Retail & E-commerce / Merchandising

Gross Margin Return on Inventory Investment GMROI

For every dollar tied up in stock, how many gross-margin dollars it earns back.

The fork, why two teams get different numbers

GMROI is only meaningful with inventory valued at COST, but it is routinely computed against inventory at RETAIL, which understates the ratio by the markup.

In the Metric Library

The full fork, both definitions worked all the way through
The trap that makes the number lie, on a real export
Every formula variant, spelled out
The reconciliation anchor, what to tie it to and when to refuse

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Reference: Retail merchandise-financial-planning convention · ASC 330 inventory cost (reference)