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How much gross profit does each inventory dollar generate?
Compare category inventory productivity with a user-selected gross-profit return target.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Annual category net sales
- $1,500,000
- Annual category cost of goods sold
- $900,000
- Average inventory at cost
- $300,000
- Your target gross-profit return on inventory
- 2.5 ×
Gross-margin return on inventory
Example result only, not a forecast or promise.
- Annual category gross profit
- $600,000
- Inventory at chosen target
- $240,000
- Inventory above / below target
- $60,000
What to do with this result
Compare margin and stock turns together; reduce inventory only where availability and assortment remain adequate.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
GMROI = (net sales − COGS) / average inventory at cost. Inventory at target = gross profit / target GMROI.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Use net collected sales and avoid double-counting returns, commissions or pass-through charges. Demand and customer behavior require validation.