Sales KPIs & Sales Metrics | Gross Margin Return on Investment

Gross Margin Return on Investment (GMROI)

Measure the total revenue gained after covering the investment of making the sale.

Guide to Sales KPIs & Metrics

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Formula

Gross margin on sales / Average inventory value [at base cost]

Services

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Role

C-Level

Overview

Make sure that the ratio between inventory costs and product sales is around an acceptable level with the Gross Margin Return on Investment metric.

Reporting frequency

Monthly

Example of KPI target

120% GMROI

Audience

CEO, CFO, Sales Manager

Variations

Gross margin inventory ROI

GMROI

Gross margin return on inventory investment