Gross Margin Return On Investment (GMROI) is an essential measurement of your company’s ability to buy and sell your products in a timely and profitable manner. The GMROI calculation shows how many dollars you’ve made for each dollar you’ve invested in your inventory. It also enables you to compare categories and items within each category. We believe it’s essential to be able to separate the winners from the losers in your product mix. This information will not only help you to be more profitable, but also have better cash flow.