Enjoy this free access to some of The ROI's proprietary resources. Ready for more? The ROI's Members-Only Collection includes even more for owners about managing cash flow.

Retailer's Growth Rater

Is 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 segment. It offers a quick comparison of financial viability. 

Retailers whose GMROI is higher than the average for their segment are managing their inventory more efficiently and achieving greater productivity than their peers. 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.


This works for any retailer for which you have the numbers, from your own stores to national chains.

Step #1. See Your GMROI

  • Just look on the annual Income Statement for Gross Margin dollars for the year (may be called "Gross Profit"). Enter that number into the GMROI GROWTH RATER
  • Then, look on the Balance Sheet for Inventory @Cost. Enter that number into the GMROI GROWTH RATER
  • Immediately! See your GMROI!

Step #2. See "Their GMROI" (the average-performing retailers in your retail segment)

  • Choose your retail segment from the dropdown menu; see the GMROI for average-performing stores.

Step #3. Compare for Yourself Is your GMROI above the average for your retail segment? Or below? 

IF your GMROI is lower than average for your segment... 

...you may be in a cash flow crunch.  You need short term working capital.

What can you do? Start by shining a light on your situation with The ROI's SPEEDY HEADLIGHTS. Quickly see how much cash you really need, and when. Plus, compare - in advance! - the outcomes of different tactics you might pursue. 

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 – "shop around" with banks and other lenders for term loans. (See Banks4Retailers to fast-track comparing your choices.)

Even more for Members at The ROI

And even more for ROI Members! 

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