GMROI (Gross Margin Return on Inventory Investment)
How much gross profit you earn for every dollar invested in inventory -- gross margin / average inventory cost.
GMROI = gross margin dollars / average inventory cost. A GMROI of 3.0 means every dollar tied up in stock returns three dollars of gross margin. It's the metric that combines margin and turnover into one verdict on whether a product earns its place on the shelf.
Skuwell surfaces GMROI alongside turnover and sell-through so buying decisions weigh profitability and velocity together, not in isolation. Use our GMROI calculator to evaluate a product or category.
Keep going.
How many times you sell through and replace average inventory in a period -- a core efficiency metric.
Read definition → Markup vs marginTwo ways to express profit on a sale: markup is profit over cost; margin is profit over selling price.
Read definition → Landed costThe true total cost of a product once it reaches your warehouse -- unit price plus freight, duties, and handling.
Read definition →See it working on a live system.
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