A calculation which determines if sufficient gross margin is earned by the company by its products or services and whether or not a company can efficiently turn inventory into cash at acceptable margins. Also called Gross Margin Return on Inventory Investment (GMROII) GMROI = Gross Margin / Average Inventory Cost
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Gross Margin Return On Investment - GMROI An inventory profitability evaluation ratio that analyzes a firm's ability to turn inventory into cash.
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... position its inventory by improving gross margin return on investment (GMROI) through SKU rationalization and more effective supply chain management.
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