Gross Margin Return on Inventory (GMROI)

GMROI (gross margin return on inventory) is the gross-margin dollars earned per dollar of average inventory at cost — gross margin ($) ÷ average inventory at cost. A result above 1.0× means margin exceeds the inventory investment.

GMROI combines margin and inventory productivity into one number, which makes it a stronger health metric than margin alone. It is most actionable at the category or class level, tracked against plan.