Financial KPIs

What is GMROI?

Gross margin earned per dollar of inventory.

Why it matters: It links merchandising to cash. Two ranges can share a margin %, but the faster-turning one returns more on the same stock.

How it's worked out: GMROI = gross margin $ ÷ average inventory at cost. ($400k ÷ $200k = 2.0)

Related terms

How many times you sell and replace your average stock in a year.

Sales minus the cost of the goods sold, as a value or a percentage.

Plan with confidence. One set of numbers, every team, every week.