GMROI: An inventory profitability evaluation ratio that analyzes a store's ability to turn inventory into cash above the cost of the inventory.
Average Inventory: You're average inventory on hand for any given period. Measured monthly is the best.
Inventory Turnover: A ratio showing how many times a store's inventory is sold and replaced over a period (usually one year)
- Increase sales/turns of the inventory they already have on hand
- Reduce overall inventory