Performance Reports: More on ROI


GROI is gross return on investment and is figured as:

Profit ÷ Average Value of Inventory

In other words, an item in inventory 6 months will have an average cost of ½ its value, an item entering into a period over 1 year will reflect its full value. 

TROI is true return on investment and is figured as:

For example, suppose an item costs $100 and sells for $200:

 

GROI

TROI

Item sold in 6 months

200%

200%

Item sold in 9 months

133%

133%

Item sold in 12 months

100%

100%

Item sold in 18 months

100%

66%

Item sold in 24 months

100%

50%

 

Updated on Mon, 07 Jun 2021 by Angela Chiaravalle

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