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In business, Gross Margin Return on Inventory Investment (GMROII, also GMROI) [1] is a ratio which expresses a seller's return on each unit of currency spent on inventory.It is one way to determine how profitable the seller's inventory is, and describes the relationship between the profit earned from total sales, and the amount invested in the inventory sold.
Typically, supply-chain managers aim to maximize the profitable operation of their manufacturing and distribution supply chain. This could include measures like maximizing gross margin return on inventory invested (balancing the cost of inventory at all points in the supply chain with availability to the customer), minimizing total operating expenses (transportation, inventory and ...
Most people find it easier to work with gross margin because it directly tells you how much of the sales revenue, or price, is profit: If an item costs $100 to produce and is sold for a price of $200, the price includes a 100% markup which represents a 50% gross margin. Gross margin is just the percentage of the selling price that is profit.
A company's financial health can be measured in different ways, including gross margin and gross profit. While they may sound similar … Continue reading ->The post Gross Margin vs. Gross Profit ...
In this equation, Ke (COE) equals the anticipated return from the difference (Beta) of investment yields from a return based on market expectations (Rm) [9] and a Risk Free Rate (Rf), such as Treasury Bills or Bonds. KIBOR – Karachi Interbank Offered Rate; KPI – Key Performance Indicator, a type of performance measurement. An organization ...
A positive flow of intended inventory investment occurs when a firm expects that sales will be high enough that the current level of inventories on hand may be insufficient—perhaps because in the presence of very short-term fluctuations in the timing of customer purchases, there is a risk of temporarily being unable to supply the product when a customer demands it.
For example, let’s say you buy 2,000 shares of XYZ company with $10,000 of your own cash plus $10,000 in your margin account at a cost of $10 a share. That’s a total of $20,000, excluding ...
Return on investment (ROI) or return on costs (ROC) is the ratio between net income (over a period) and investment (costs resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favorably to its cost.