You’re offline. This is a read only version of the page.
Dear all,
In the report, Gross margin return on inventory investment by products/category,
Calculating GMROI
GMROI = (Annual sales X Gross margin %) / (Average inventory cost)
Hence, I have calculated for a year, I choose the valued fiscal year in the report parameters.
Annual sales - Total amount of sales for an item.
Gross margin percentage - It denotes the amount gain or loss from the total amount of purchase for an item.
Revenue - Amount of sales for an item.
For the gross margin percentage, have to do certain calculation for get the value.
Calculating Gross margin %
= (Gross margin amount divided by revenue) and multiplied by 100.
My question,
How to calculate the Average inventory cost for GMROI calculation?
Best Regards,
Hem
*This post is locked for comments
I have the same question (0)
#1
Guy Terry
2
Moderator
#1
Martin Dráb
2
Most Valuable Professional
#1
Community Member
2
Share
Report
All responses (
Answers (