Metrics & KPIsGross Margin Return on Inventory Investment
Definition
The GM ROII multiplies Inventory Turns (which tells us how healthy our stock is) by Gross margin (which tells us the percentage of profit we make on each sale). Formula: GM ROII = Gross Margin % * Inventory Turns Inventory Turns = Sales / Average Inventory A typical value in DIY is at least 100.
Tags
ROI, return on investment, profit, investment, inventory, sales