Retailer's Growth Rater

The ROI's GMROI Growth RaterIs there a cash crunch in your near future?

Here is a fast, simple, and extremely telling measure of a retailer's financial viability!

Quick • Verifiable • Sophisticated • Uniquely Retail

Calculating GMROI enables any retailer to quickly assess their effectiveness at managing their largest asset: their inventory.

Now, thanks to The ROI's unique GMROI Growth Rater, any retailer can see how their productivity compares to the average performing retailer in their segmentGet a quick comparison of retail financial viability. 

The ROI's GMROI Growth Rater works for any retail operation.

Step #1: Enter your Gross Margin dollars (may be called "Gross Profit") and Inventory @Cost into the GMROI Growth Rater. Immediately! See your GMROI!

Step #2: Choose your retail segment from the dropdown menu; see the GMROI for average-performing stores in that retail segment.

Step #3: Is your GMROI ABOVE the average for your retail segment? Or BELOW? 

What it means

If your GMROI is lower than average for your segment, you may be in a cash flow crunch. You likely need short term working capital.

What can you do? Start by shining a light on your situation. 

  • You need a cash flow projection to see how much cash you will need, and when. Use The ROI's 3-in-1 INTEGRATED Cash Flow Calculator to do that quickly.
  • Then, play "What if...?" Consider different tactics you might pursue, and use the 3-in-1 Calculator to readily compare the outcomes of each "what if...?" idea.

If your GMROI is higher than the average performer for your retail segment, congratulations! That means you have choices, for growth and for financing.

As you consider your choices – expansion, equipment purchases, technology upgrades, store acquisitions, other opportunities – take advantage of The ROI's 3-in-1 INTEGRATED Cash Flow Calculator. Having a well-thought-out and substantiated cash flow projection in hand as you meet with prospective lenders gives you great advantages. You can negotiate from strength! 

What GMROI Can Reveal

Retailers whose GMROI is higher than the average for their segment are managing their inventory more efficiently and achieving greater productivity than their peers. That suggests that these retailers are financially stronger than the others in their segment.

Conversely, a retailer whose GMROI is lower than the average for their segment is very likely to be in a cash crunch, or approaching one.


  • GMROI is best used as a comparative measure; compare stores, or departments, or even vendors.
  • GMROI reflects both margins and turns, and therefore reflects the financial dynamics in retailing.
  • There is no one right answer for what GMROI "should" be. Given the variety of margins and turns between retailers in different segments, there are significant differences in average GMROI between specific retail segments.

Since 1999, empowering retailers and store owners to "Turn on your financial headlights!"