GMROI: Gross Margin Return on Investment
Equation: GMROI = (Gross Margin * Net Sales) / (Average Inventory
* Cost of Goods)
Gross Margin: The profitability of products as a
percentage
Equation: Gross Margin = (Retail Price - Cost of Goods) / Retail
Price
Gross Profit: The total profit before deducting
operating expenses
Equation: Gross Profit = Net Sales - (Cost of Goods * Units Sold)
Inventory Turnover: How quickly inventory is sold
and replaced
Equation: Inventory Turnover = (Cost of Goods * Units Sold) /
Average Inventory
Maintained Margin: The actual margin achieved
after accounting for markdowns and shrinkage
Equation: Maintained Margin = (Net Sales - (Cost of Goods * Units
Sold)) / Net Sales
Markdown Percentage: The discount given on
products
Equation: Markdown Percentage = (Retail Price - Markdown Price) /
Retail Price
Sell-Through Rate: How fast products are
selling
Equation: Sell-Through Rate = Units Sold / (Units Sold + Units on
Hand)
Weeks of Supply: Estimated time current inventory
will last based on sales rate
Equation: Weeks of Supply = (Current Inventory / Projected Sales)
* 52
Year-Over-Year Growth: Compares performance to
the previous year
Equation: YOY Growth = (Current Year Sales - Previous Year Sales)
/ Previous Year Sales