GMROI

Is your inventory actually paying its way?

GMROI tells you how many gross-margin dollars you earn for every dollar tied up in inventory. It's the single cleanest read on whether stock is an asset or a cash trap.

Annual gross margin

Revenue minus COGS, in dollars.Average inventory (at cost)

GMROI

2.67×

gross-margin $ per $1 of inventory

Acceptable. Above the 2.0× floor, but there's room. ABC-XYZ and safety-stock right-sizing typically lift this.

See how your number compares — and what to do about it

GMROI is the headline; the levers behind it are demand planning, classification, and safety-stock policy. The free Margin Scan benchmarks your inventory health and flags which lever moves your number most.

Take the free Margin Scan →15 minutes · benchmark report against mid-market peers ($25M–$250M)

Source: ADEXMA Calculation Catalog · FRM-SC-026 · part of Margin Architecture™.