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In accounting, the inventory turnover is a measure of the number of times inventory is sold or used in a time period such as a year. It is calculated to see if a business has an excessive inventory in comparison to its sales level. The equation for inventory turnover equals the cost of goods sold divided by the average inventory.
In business, Gross Margin Return on Inventory Investment (GMROII, also GMROI) [1] is a ratio which expresses a seller's return on each unit of currency spent on inventory.It is one way to determine how profitable the seller's inventory is, and describes the relationship between the profit earned from total sales, and the amount invested in the inventory sold.
A positive flow of intended inventory investment occurs when a firm expects that sales will be high enough that the current level of inventories on hand may be insufficient—perhaps because in the presence of very short-term fluctuations in the timing of customer purchases, there is a risk of temporarily being unable to supply the product when a customer demands it.
But the strike took a toll on Target's profits as it struggled with inventory buildup in its warehouses. Target posted net income of $854 million, or $1.85 per share, in the quarter ended Nov. 2 ...
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That same month, John Furner, CEO and president of Walmart U.S., said "there’s probably 20% of [inventory] if you could just wish away and make it disappear, you would." Walmart's rival Target ...
Most people find it easier to work with gross margin because it directly tells you how much of the sales revenue, or price, is profit: If an item costs $100 to produce and is sold for a price of $200, the price includes a 100% markup which represents a 50% gross margin. Gross margin is just the percentage of the selling price that is profit.
Jefferies Sr. Research Analyst Corey Tarlowe joins Yahoo Finance Live to discuss upgrading Target to Buy, the retail company’s inventory problem, consumer trends, COVID impacts, and the outlook ...