Ví dụ về việc sử dụng Inventory turnover trong Tiếng anh và bản dịch của chúng sang Tiếng việt
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Broadly speaking, a high inventory turnover ratio is good for business.
Inventory turnover is the number of times a company's inventory is sold and replaced with new stock.
For instance, let's say that we have an inventory turnover ratio of 8.5 for a given year.
As a result, inventory turnover could increase from four times a year to eight times.
From the marketer perspective High volumes Low contributionmargins Extensive distribution networks High inventory turnover.
Comparison Sheet Inventory Turnover and Days of Inventory between companies.
The average inventory period formula is calculated bydividing the number of days in the period by the company's inventory turnover.
To calculate, first determine the inventory turnover rate during the period of time to be measured.
Inventory turnover rate for the company was quite high almost once in every two weeks for most of the items.
It suits high-density storage as it can hold up to 20 pallets deep in one lane,allowing quick and efficient inventory turnover.
So, the inventory turnover for the year was 9.5, which the analyst then plugs into the following equation.
One useful way to judge abusiness's operating efficiency is to compare its inventory turnover ratio to the average value for businesses in the same industry.
Inventory turnover is important because a company often has a significant amount of money tied up in its inventory. .
Sometimes a company's accounts receivable turnover ratio, inventory turnover ratio, and free cash flow are also used to assess a company's liquidity.
Inventory turnover can be figured a few different ways, but the simplest way is to divide sales by the average inventory value.
For all of the intellectual understanding, the reality remained slow inventory turnover and an accounting system that functionally treated inventory similarly to cash.
The inventory turnover, also known as sales turnover, helps investors determine the level of risk they will face if providing operating capital to a company.
Red Stag Fulfillment reviews show the company charges lower storage fees compared to many others,so it's a good choice for enterprises with with slow inventory turnover.
One limitation of the inventory turnover ratio is that it tells you the average number of times per year that a company's inventory has been sold.
In our example, COGS is $5 million and average inventory is $0.4 million,so our inventory turnover for the year is $5 million/$0.4 million= 12.5.
Jack is on a high inventory turnover ratio and can collect accounts receivable from his customer within 30 days of period on average.
Since this inventory calculation is based on how many times a company can turn its inventory, you can also use the inventory turnover ratio in the calculation.
Because of this, a business's inventory turnover can be used to gain clues about how efficiently a business is operating, especially compared to competitors.
An efficient working capital management system often uses key performance ratios,such as the working capital ratio, the inventory turnover ratio and the collection ratio, to help identify areas that require focus in order to maintain liquidity and profitability.
Tim has a fairly high inventory turnover ratio for his industry and can collect accounts receivable from his customer within 30 days on average.
The Company's business is based upon achieving high sales volumes andrapid inventory turnover by offering a limited assortment of merchandise in a wide variety of product categories at low prices.
Inventory turnover is always calculated over a specific period of time- this can be anything from a single day to a fiscal year- even the entire lifespan of the business.
To calculate, the analyst first figures the inventory turnover rate over the past year, which requires knowing the company's average inventory over the year.
Inventory turnover ratio can be calculated on a regular basis to determine a trend by analyzing which items have been sitting on the shelves for a longer period of time and becoming obsolete.
Generally, a high inventory turnover ratio reflects that the firm is selling inventory(thereby having to spend money to make a new inventory) relatively quickly.