Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How Can We Calculate Gross Margin Return On Inventory Investment?

April 26, 2017CALCULATE gross Inventory Investment margin popular news Return

0

10 Posted

How Can We Calculate Gross Margin Return On Inventory Investment?

1 Answer

0

10 Posted

Here’s How: Find the average inventory at cost. Calculate the gross margin of the item. Divide the gross margin by the average cost of inventory to get GMROI. The result is a ratio indicating the number of times gross margin is earned from the inventory investment.