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Gross Margin Return On Investment
A gross margin return on investment (GMROI) is an inventory profitability evaluation ratio that analyzes a firm's ability to turn inventory into cash above the cost of the inventory. It is calculated by dividing the gross margin by the average inventory cost and is used often in the retail industry. GMROI is also known as the gross margin return on inventory investment (GMROII).
The Formula for Gross Margin Return on Investment
GMROI = {Gross profit}}\{Average inventory cost}
Where Gross Profit = Sales - COGS
and Average Inventory = (Begining Inventory + Ending Inventory )/2
How to find above in Netsuite
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