Good Quality Price Ratio

Here’s an example: If your company bought $50,000 worth of products last year and sold $200,000 worth of products in the same period, your stock ratio is 4.0. This means that you have sold four times the value of your shares during the year. Therefore, the shares rotate 4 times a year. Therefore, in this situation you should plan to buy at least four times your shares in the next year. There are two main ways to calculate stocks : The easiest way is to add the stock at the beginning of the year to the stock at the end of the year and then divide by two. The most accurate method is to add the beginning of each month’s stock to the end of the previous month’s stock and then divide by 13.

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The first glance, it may seem that both methods give the same result: your annual sales do not change when calculat on a monthly basis. However, all companies experience monthly SMS Gateway Switzerland fluctuations in their sales and inventories. The monthly average allows you to take these fluctuations into account in your calculation and will therefore be more accurate. For example, if you sell more items in the summer than in the winter, the monthly stock calculation more accurately reflects the bottom line. Think of it like a high-resolution image of your company’s financials. I share some recommendations for good inventory management.

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Stock management First, you ne to compare your inventory turnover rate to the industry average to determine if it’s faster (higher) or slower (lower) than your competitors. Faster DP Leads stock turnover means lower merchandise storage costs. Less storage space is ne and the risk of having obsolete or expir products in stock is also ruc. However, the risk of running out of stock is greater and delivery costs may increase if you do not have a proper logistics strategy. Slower stock turnover requires a larger warehouse, since more products will be in stock. However, this protects your company from running out of stock during periods of high demand.

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