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jayaseelan
Not applicable

GMROI Calculation

Hi everyone,

                 I have problem in calculating GMROI in inventory. I referred websites but there are more then 4 formulas i don't know what i want to use. Please give me any suggestion. 

Thanks,

1 Reply
jontydkpi
Not applicable

Re: GMROI Calculation

My (limited) understanding is that GMROI is simple - gross margin divided by inventory cost. The problem is that gross margin and inventory cost can mean different things to different people and may be calculated in different ways. You need to decide in your environment how to calculate these values and then it is simple to produce the ratio.

Google

How to calculate GMROI

Gross Margin Return On Investment (GMROI) Definition | Investopedia

Logic will get you from a to b. Imagination will take you everywhere. - A Einstein