How To Calculate GMAU in Acumatica | Arithmix

Calculating GMAU in Acumatica is a straightforward process that can help you gain valuable insights into your business operations. In this article, we will explain what GMAU is, when it is valuable to calculate GMAU, and how to calculate it in Acumatica.

What Is GMAU?

GMAU stands for Gross Margin Return on Investment. It is a financial metric that measures the profitability of your business by comparing the gross margin generated by your products or services to the amount of money invested in them. In other words, GMAU tells you how much profit you are making for every dollar you invest in your business.

GMAU is calculated by dividing the gross margin of a product or service by its cost of goods sold (COGS) and multiplying the result by 100. The formula for GMAU is as follows:

GMAU = (Gross Margin / COGS) x 100

For example, if a product has a gross margin of $50 and a COGS of $100, its GMAU would be:

GMAU = ($50 / $100) x 100 = 50%

When Is It Valuable To Calculate GMAU?

Calculating GMAU can be valuable in a variety of situations. For example, it can help you:

• Determine which products or services are the most profitable
• Identify areas where you can improve your profitability
• Compare the profitability of different products or services
• Evaluate the return on investment of your marketing and sales efforts

By calculating GMAU, you can make data-driven decisions that can help you increase your profitability and grow your business.

How To Calculate GMAU In Acumatica

To calculate GMAU in Acumatica, you will need to gather the following information:

• Gross margin for the product or service
• Cost of goods sold for the product or service

Once you have this information, follow these steps:

1. Divide the gross margin by the cost of goods sold to get the GMAU ratio
2. Multiply the GMAU ratio by 100 to get the GMAU percentage

For example, let's say you have a product with a gross margin of $500 and a cost of goods sold of $1,000. To calculate the GMAU in Acumatica, you would follow these steps:

1. GMAU ratio = $500 / $1,000 = 0.5
2. GMAU percentage = 0.5 x 100 = 50%

Once you have calculated the GMAU for your products or services, you can use this information to make informed decisions about your business operations.

In conclusion, calculating GMAU in Acumatica can provide valuable insights into your business profitability. By understanding what GMAU is, when it is valuable to calculate it, and how to calculate it in Acumatica, you can make data-driven decisions that can help you increase your profitability and grow your business.

How Do You Calculate GMAU in Acumatica

Acumatica itself isn’t naturally geared towards letting you calculate complex metrics like GMAU. As an alternative, teams typically use products like Arithmix to import data from Acumatica and build out dashboards.

What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Acumatica, combine it with data from other systems, and create calculations like GMAU.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.

Arithmix is fully collaborative, giving your entire team access to your numbers and the ability to work together seamlessly.

Calculating GMAU in Arithmix

Calculating metrics like GMAU is simple in Arithmix. Once you've created your free account, you’ll be able to import your Acumatica data, and use it to create natural language formulas for metrics like GMAU.

Arithmix is designed to give you the power to build any calculations you want on top of your Acumatica data, while also being easy to use and collaborate on. You can share your dashboards with users inside and outside of your organisation, making it easy to empower your whole team.