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Gross Margin Return on Investment Formula

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Return_on_Investment_(ROI) is the ratio of a profit or loss made in a fiscal year expressed in terms of an investment. Check FAQs

ROI = \frac{GP}{\frac{S o - S c}{2}} \cdot 100

ROI - Return_on_Investment_(ROI)?GP - Gross_Profit?S_o - Opening Stock?S_c - Closing Stock?

Gross Margin Return on Investment Example

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Here is how the Gross Margin Return on Investment equation looks like with Values.

Here is how the Gross Margin Return on Investment equation looks like with Units.

Here is how the Gross Margin Return on Investment equation looks like.

750 = \frac{7500}{\frac{5000 - 3000}{2}} \cdot 100

750 = \frac{7500}{\frac{5000 - 3000}{2}} \cdot 100

750 = \frac{7500}{\frac{5000 - 3000}{2}} \cdot 100

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Gross Margin Return on Investment Solution

Follow our step by step solution on how to calculate Gross Margin Return on Investment?

FIRST Step Consider the formula

ROI = \frac{GP}{\frac{S o - S c}{2}} \cdot 100

Next Step Substitute values of Variables

∴

ROI = \frac{7500}{\frac{5000 - 3000}{2}} \cdot 100

Next Step Prepare to Evaluate

∴

ROI = \frac{7500}{\frac{5000 - 3000}{2}} \cdot 100

LAST Step Evaluate

∴

ROI = 750

Gross Margin Return on Investment Formula Elements

Variables

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.

Symbol: ROI

Measurement: NAUnit: Unitless

Note: Value can be positive or negative.

Formulas to find Return_on_Investment_(ROI)

Gross_Profit

Gross_Profit or Gross Revenue is the profit a company makes after deducting the costs associated with making and selling its products.

Symbol: GP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Gross_Profit

Opening Stock

Opening Stock also called Beginning Inventory, refers to the quantity held by a company at the beginning of the accounting period.

Symbol: S_o

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Opening Stock

Closing Stock

Closing Stock is the amount of inventory that a business still has on hand at the end of a reporting period.

Symbol: S_c

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Closing Stock

Other formulas in Operational and Financial Factors category

Go Expected Number of Customers in System

L s = \frac{λ a}{μ - λ a}

Go Expected Number of Customers in Queue

L q = \frac{{λ a}^{2}}{μ \cdot (μ - λ a)}

Go Expected Length of Non-Empty Queue

l = \frac{μ}{μ - λ a}

Go Uniform Series Present Sum of Money

f c = i fc + i u.s

How to Evaluate Gross Margin Return on Investment?

Gross Margin Return on Investment evaluator uses Return_on_Investment_(ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100 to evaluate 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 evaluate Gross Margin Return on Investment using this online evaluator? To use this online evaluator for Gross Margin Return on Investment, enter Gross_Profit (GP), Opening Stock (S_o) & Closing Stock (S_c) and hit the calculate button.

FAQs on Gross Margin Return on Investment

What is the formula to find Gross Margin Return on Investment?

The formula of Gross Margin Return on Investment is expressed as Return_on_Investment_(ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100. Here is an example- 750 = 7500/((5000-3000)/2)*100.

How to calculate Gross Margin Return on Investment?

With Gross_Profit (GP), Opening Stock (S_o) & Closing Stock (S_c) we can find Gross Margin Return on Investment using the formula - Return_on_Investment_(ROI) = Gross_Profit/((Opening Stock-Closing Stock)/2)*100.

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Gross Margin Return on Investment Formula

Gross Margin Return on Investment Example

Gross Margin Return on Investment Solution

Gross Margin Return on Investment Formula Elements

Other formulas in Operational and Financial Factors category

How to Evaluate Gross Margin Return on Investment?

FAQs on Gross Margin Return on Investment

Variable Name