The purpose of inventory turnover rate evaluation is to plan and predict the cash flow of the whole company from the financial point of view, so as to evaluate the demand and supply chain operation level of the whole company.
For example, the cost of materials sold by a manufacturing company in the first quarter of 20 15 is 2 million yuan, its inventory value at the beginning of the quarter is 300,000 yuan, and its inventory value at the end of the quarter is 500,000 yuan, so its inventory turnover rate is 200/(30+50)/2=5 times. It is equivalent to five times the company's turnover in a quarter, with an average cash of 400,000.
Question 2: The inventory turnover rate basically introduces the replacement of sales revenue with product cost, which eliminates the influence brought by market price fluctuation. Replacing year-end inventory with annual average inventory eliminates another influencing factor-managers usually artificially reduce year-end inventory for a good performance. We can calculate the inventory turnover rate of materials in any value stream. However, when comparing, please note that the turnover rate will change with the length of the value stream, even if all parts of the whole value stream are equally "lean". For example, a factory only responsible for assembly may have a turnover rate of 100 or even higher, but if suppliers are added, the turnover rate will drop to 12 or lower; If all the value streams of raw materials are added up, the turnover rate may drop below 4. This is because the product cost of downstream processes is basically unchanged, and when we count more and more upstream factories, the average inventory value is increasing. If we shift our attention from the annual inventory turnover rate to the change of inventory turnover rate over time, inventory turnover rate will become an excellent standard to measure lean transformation. It will be a "very correct statistical parameter" to calculate the turnover rate with the annual average inventory. Inventory turnover is equal to the cost of materials sold divided by the average inventory. Here, the material cost of sales refers to the total cost of materials included in the final product sales completed by the company, while the average inventory refers to the average inventory of all raw materials, in-process products, finished products and all sluggish materials in hand. The average inventory here usually refers to the average inventory at various points at the end of each financial cycle. Some companies calculate the average inventory at the end of each financial quarter, while others calculate the average inventory at the end of each month. The purpose of inventory turnover rate evaluation is to plan and predict the cash flow of the whole company from the financial point of view, so as to evaluate the demand and supply chain operation level of the whole company. A very simple algorithm, such as a manufacturing company's sales cost in the first quarter of 2003 is 2 million yuan, its inventory value at the beginning of the quarter is 300,000 yuan, and its inventory value at the end of the quarter is 500,000 yuan, then its inventory turnover rate is 200/[(30+50)/2]=5 times. It is equivalent to the company's average cash turnover of 400,000 for five times in a quarter and earned five profits. According to the calculation, if the average cost of materials sold in each quarter remains unchanged and the average inventory at the end of each quarter remains unchanged, then the annual inventory turnover rate of the enterprise will become 200*4/40=20 times. It is equivalent to the company's annual profit of 400,000 cash and 20%! Inventory turnover rate is of great significance to the inventory management of enterprises. For example, the interests of manufacturers are generated through the circulation of funds → raw materials → products → sales → funds. If this cycle is fast, that is, when the turnover is fast, the interest rate will be high under the same amount of funds. Therefore, the turnover rate represents the measure of enterprise interests, which is called "inventory turnover rate". There is no absolute evaluation standard for inventory turnover rate, which is usually compared with each other in the same industry or with other periods within the enterprise. Inventory performance evaluation and analysis, inventory turnover rate is the focus of evaluation. Reduce the monthly inventory amount, speed up the turnover times of each SKU, increase the sales of unsalable goods, strictly control the total number of SKUs in shopping malls, departments and classes, control the introduction speed of new goods, and increase the frequency of placing orders. How many times to implement 1 target setting ―― Basic reading comprehension of inventory control under the condition of integrated supply chain management ―― Correct reading comprehension of "inventory control" ―― Several misunderstandings of inventory management and inventory management knowledge training ―― Positioning of inventory reading comprehension in manufacturing industry ―― Inventory is the "adhesive" of supply chain reading comprehension ―― Declining effect of inventory turnover rate and optimal decision-making model ―― One of the reading understandings of inventory formation is that inventory problems are like the second reading of diabetes. Can Changhong's historical accounts be written off? The third reading comprehension is that "zero inventory" is just a realm. The fourth reading comprehension is about the workload of buyers. The fourth reading comprehension is to find the switch of inventory control and optimize the inventory management achievements of China manufacturing industry. The fifth reading comprehension is about the relationship between inventory control and warehousing. The second reading comprehension is to reduce inventory. Reading and understanding the relationship between inventory control and purchasing plan (MRP) from the perspective of warehouse (I) Division of material responsibilities of parts suppliers (II) Manufacturing inventory structure analysis technology and its application ... >>
Question 3: Inventory turnover rate introduces inventory turnover rate, abbreviated as ITO in English, which is a standard to measure the flow speed of materials in a factory or the whole value stream. The most commonly used method to calculate the inventory turnover rate is to divide the annual cost of selling products (excluding sales expenses and management expenses) by the annual average inventory value. Therefore: inventory turnover rate = annual cost of selling products/average inventory value of the year.
Question 4: What is the inventory turnover rate and how much is normal? There is no uniform standard, which mainly depends on the nature of inventory, the distance of purchase, the average monthly consumption (sales volume), the cost of each purchase and the cost during the inventory period.
The inventory of general commodity enterprises is 45-60 days.
Question 5: What does the inventory turnover rate of the warehouse mean? Inventory/sales *360 days-refers to the average number of days of inventory sales.
Question 6: What does inventory turnover mean? Inventory turnover is equal to the cost of selling materials divided by the average inventory. Here, the material cost of sales refers to the total cost of materials included in the final product sales completed by the company, while the average inventory refers to the average inventory of all raw materials, in-process products, finished products and all sluggish materials in hand. The average inventory here usually refers to the average inventory at various points at the end of each financial cycle. Some companies average their inventory at the end of each financial quarter, while others average their inventory at the end of each month. The purpose of inventory turnover rate evaluation is to plan and predict the cash flow of the whole company from the financial point of view, so as to evaluate the demand and supply chain operation level of the whole company. A very simple algorithm, such as a manufacturing company in the first quarter of 2003, the cost of selling materials is 2 million yuan, its inventory value at the beginning of the season is 300,000 yuan, and the inventory value at the end of the season is 500,000 yuan, so its inventory turnover rate is 200/(30+50)/2=5 times. It is equivalent to the company's average cash turnover of 400,000 for five times in a quarter and earned five profits. According to the calculation, if the average cost of materials sold in each quarter remains unchanged and the average inventory at the end of each quarter remains unchanged, then the annual inventory turnover rate of the enterprise will become 200*4/40=20 times. It is equivalent to the company's annual profit of 400,000 cash and 20%!
Question 7: How to compare the inventory turnover rate? What do you mean by inventory turnover days? What does inventory turnover mean? 1) can directly compare the turnover rate and days. The first one turns fast, and the last one turns slowly. It can be understood that the flow of goods is faster and the capital flow is better.
2) From your second explanation and the above data, I'm not sure whether your calculation is correct (the data is incomplete). Because it should not be understood that 86 1 set (sales volume) has increased by 2.7 1 times in three months, but the average inventory in three months has increased by 2.7 1 times.
3) can be directly compared. Although the denominators are different, they are all relative values. Inventory turnover rate is to explain inventory turnover rate. For example, if my income is 10000 and I spend 5000 every month, my expenditure rate is 1/2. You earn/kloc-0.000, spend 800, and your speed is 4/5. Although you don't earn as much as me, you spend it quickly. So this is a comparison of relative rates, not absolute values.
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Question 8: What does inventory turnover mean? Hello, classmate, I'm glad to answer your question!
Inventory Turnover Inventory Turnover The calculation method of the multiple of sales and replacement of inventory in a specific period is: sales-sales-sales-sales.
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