Gross Profit Return on Inventory Investment (GPROI) is the gross profit earned per dollar of average inventory investment. A productivity measure that provides an indicator on the profit made for every dollar of average inventory. This measure helps business leaders to compare the profit potential of inventory investment across items or their merchandise hierarchy.
GPROI=Gross Profit / Average Inventory at cost (note Gross Profit and Average Inventory over the same period of time).
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