Mr Calcu | Gross Margin Return on Investment Calculator

Calculate Gross Margin Return on Investment for retail profitability analysis

Gross Margin Return on Investment Calculator

Gross Margin (%)

Average Inventory Cost ($)

Total Sales ($)

Inventory Turnover

Gmroi Calculator Guidelines

Enter your gross margin as a percentage
Input your average inventory cost
Consider seasonal fluctuations in inventory

Gmroi Calculator Description

Understanding Gmroi

Gmroi is a metric that evaluates the profitability of inventory investments by measuring the gross margin earned relative to the inventory cost. It's crucial for retailers to optimize their inventory management and pricing strategies.

The Gmroi calculation helps businesses understand how much gross margin they're generating per dollar invested in inventory. A higher Gmroi indicates better inventory performance.

To use this calculator, simply input your gross margin percentage, average inventory cost, and other relevant metrics. The calculator will then provide your Gmroi, helping you make informed decisions about your inventory investments.

Example Calculation

Gross Margin %	Average Inventory	Gmroi
25%	$1000	2.5

Frequently Asked Questions

A good Gmroi varies by industry, but generally, a higher Gmroi is better. For many retailers, a Gmroi above 3 is considered good.

It's recommended to calculate Gmroi regularly, such as quarterly or annually, to monitor inventory performance over time.