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Glossary · Finance

What is GMROI?

GMROI, gross margin return on inventory investment, measures the gross margin earned for every dollar of inventory held at cost.

A GMROI of 2.0 means each dollar of inventory returned two dollars of gross margin. It captures both margin and speed of sale, which margin percentage alone does not.

Formula

GMROI = gross margin ÷ average inventory at cost

How Stokrio handles it

Stokrio's turnover and GMROI report calculates it from your sales, cost and stock.

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