Alternative Formulas For GMROII
Other formulas that are often given for GMROII are the following (note that all of these are mathematically equivalent because all can be reduced down to Margin/Avg_Inventory_cost):
In the formulas above, "Margin %" refers to margin as a percent of sales, "Annual Inventory Turns" refers to COGS / Avg Inventory Cost.
Read more about this topic: GMROII
Famous quotes containing the words alternative and/or formulas:
“Our mother gives us our earliest lessons in love—and its partner, hate. Our father—our “second other”Melaborates on them. Offering us an alternative to the mother-baby relationship . . . presenting a masculine model which can supplement and contrast with the feminine. And providing us with further and perhaps quite different meanings of lovable and loving and being loved.”
—Judith Viorst (20th century)
“That’s the great danger of sectarian opinions, they always accept the formulas of past events as useful for the measurement of future events and they never are, if you have high standards of accuracy.”
—John Dos Passos (1896–1970)