Gross Margin Return on Investment Solution

STEP 0: Pre-Calculation Summary
Formula Used
Return on Investment (ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100
ROI = GP/((So-Sc)/2)*100
This formula uses 4 Variables
Variables Used
Return on Investment (ROI) - Return on Investment (ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment.
Gross_Profit - Gross_Profit or Gross Revenue is the profit a company makes after deducting the costs associated with making and selling its products.
Opening Stock - Opening Stock also called Beginning Inventory, refers to the quantity held by a company at the beginning of the accounting period.
Closing Stock - Closing Stock is the amount of inventory that a business still has on hand at the end of a reporting period.
STEP 1: Convert Input(s) to Base Unit
Gross_Profit: 7500 --> No Conversion Required
Opening Stock: 5000 --> No Conversion Required
Closing Stock: 3000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
ROI = GP/((So-Sc)/2)*100 --> 7500/((5000-3000)/2)*100
Evaluating ... ...
ROI = 750
STEP 3: Convert Result to Output's Unit
750 --> No Conversion Required
FINAL ANSWER
750 <-- Return on Investment (ROI)
(Calculation completed in 00.004 seconds)

Credits

Creator Image
Created by Kaki Varun Krishna
Mahatma Gandhi Institute of Technology (MGIT), Hyderabad
Kaki Varun Krishna has created this Calculator and 25+ more calculators!
Verifier Image
Verified by Akshada Kulkarni
National Institute of Information Technology (NIIT), Neemrana
Akshada Kulkarni has verified this Calculator and 900+ more calculators!

Operational and Financial Factors Calculators

Expected Number of Customers in Queue
​ LaTeX ​ Go Expected Number of Customers in Queue = (Mean_Arrival_Rate^2)/(Mean_Service_Rate*(Mean_Service_Rate-Mean_Arrival_Rate))
Expected Number of Customers in System
​ LaTeX ​ Go Expected Number of Customers in System = Mean_Arrival_Rate/(Mean_Service_Rate-Mean_Arrival_Rate)
Expected Length of Non-Empty Queue
​ LaTeX ​ Go Expected Length of Non-empty Queue = Mean_Service_Rate/(Mean_Service_Rate-Mean_Arrival_Rate)
Uniform Series Present Sum of Money
​ LaTeX ​ Go Annual_Devaluation_Rate = Rate_of_Return_Foreign_Currency+Rate_of_Return_USD

Gross Margin Return on Investment Formula

​LaTeX ​Go
Return on Investment (ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100
ROI = GP/((So-Sc)/2)*100

How does GMROI help ?

Tracking this metric on a monthly cycle helps in identifying which item produces a higher gross profit in the inventory.

How to Calculate Gross Margin Return on Investment?

Gross Margin Return on Investment calculator uses Return on Investment (ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100 to calculate the Return on Investment (ROI), The Gross Margin Return on Investment is indicative of the gross profit that is earned for every average investment that is made with regards to inventory. Return on Investment (ROI) is denoted by ROI symbol.

How to calculate Gross Margin Return on Investment using this online calculator? To use this online calculator for Gross Margin Return on Investment, enter Gross_Profit (GP), Opening Stock (So) & Closing Stock (Sc) and hit the calculate button. Here is how the Gross Margin Return on Investment calculation can be explained with given input values -> 750 = 7500/((5000-3000)/2)*100.

FAQ

What is Gross Margin Return on Investment?
The Gross Margin Return on Investment is indicative of the gross profit that is earned for every average investment that is made with regards to inventory and is represented as ROI = GP/((So-Sc)/2)*100 or Return on Investment (ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100. Gross_Profit or Gross Revenue is the profit a company makes after deducting the costs associated with making and selling its products, Opening Stock also called Beginning Inventory, refers to the quantity held by a company at the beginning of the accounting period & Closing Stock is the amount of inventory that a business still has on hand at the end of a reporting period.
How to calculate Gross Margin Return on Investment?
The Gross Margin Return on Investment is indicative of the gross profit that is earned for every average investment that is made with regards to inventory is calculated using Return on Investment (ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100. To calculate Gross Margin Return on Investment, you need Gross_Profit (GP), Opening Stock (So) & Closing Stock (Sc). With our tool, you need to enter the respective value for Gross_Profit, Opening Stock & Closing Stock and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!