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GMROI Calculator (Gross Margin Return on Investment)

LAST UPDATE: July 4th, 2018

Calculator

What is GMROI (Gross Margin Return on Investment)?

GMROI measures an organization’s ability to turn inventory into cash in relation to the cost of the inventory.

Formula

GMROI = (Annual Sales / Average Inventory Cost) x (Gross Margin / 100)

Sources and more resources