The Inventory ROI panel keeps you informed of how your products are performing in comparison to the amount of money encumbered in stock-on-hand over the selected period of time. The ROI will give you an indication of cashflow performance and can help you uncover whether there are opportunities in your company that can make better use of the monetary investment. 

A low ROI can indicate that you are holding excessive amounts of inventory. For example, if you made a purchase decision to hold more stock due to an uncertain supply chain. The gross profit divided by this higher stock position will lower the ROI in this circumstance. The gross profit will also affect the ROI calculation. For example, you may see that reducing margins due to competition now makes a group of products less worthwhile to offer overall. 

Ultimately, the best ROI will come from making the most gross profit while running the inventory as lean as possible. 

NOTE: The inventory and sales values will exclude Never Diminishing Products. 

The figures are compared to the previous date range selected in the top right corner of the dashboard to show you how your current values compare to the past.

Calculations: 

Order Fill Rate

[Completed SO in selected time period] / ([Open SO within time period] + [Open SO from previous time period] + [Completed SO in selected time period]

Open SO = Backordered + Placed + Parked

Rate of Inventory (ROI)

[Total Gross in selected time period] / [Average Cost of Inventory] x 100