Average annual residuals of finished products formula. Analysis of inventory and turnover of goods. Accounts payable turnover

Indicator unit:

Explanation of the essence of the indicator of the period of one turnover of stocks

The period of one inventory turnover (English-language analogue - Days ’Sales in Inventory, Inventory Turnover in Days) is an indicator of business activity, which indicates the effectiveness of the company's inventory management. The ratio is calculated as the ratio of the product of the number of days in a year by the average annual amount of inventory to the amount of cost. The value of the indicator indicates how many days the stock is kept in the company's warehouse.

Standard value of the period of one inventory turnover:

A decrease in the value over the study period is a positive trend. It suggests that less money is spent on building stocks. To determine the effectiveness of the company's work in this direction, it is advisable to compare the indicator with the values ​​of competitors.

A financial institution offers the following standard indicators, depending on the field of activity of the company:

Table 1. Normative value indicator in the context of the field of activity, days

Source: Vasina N.V. Modeling financial condition agricultural organizations in assessing their creditworthiness: Monograph. Omsk: Publishing house of NOU VPO OmGA, 2012. p. 49.

In general, the rule is that the lower the period of one turnover of stocks, the more effective is the control over the process of formation and use of stocks.

It is worth remembering that the value of the indicator may be too low. In this case, the production or sales process can be paralyzed. Therefore, inventory management policies should take into account seasonal fluctuations, changing consumer tastes, industry specifics and production process, possible unforeseen situations during delivery, other factors.

Directions for solving the problem of finding the indicator outside the regulatory limits

If the value of the indicator deviates from the standard, it is necessary to optimize the structure of stocks. To do this, you can use methods such as ABC analysis, XYZ analysis and others. Reducing the volume of inventory will reduce the amount of required financial resources, which will reduce financial costs or increase the company's revenues by investing in the intensification of activities.

The formula for calculating the period of one inventory turnover:

Period of one inventory turnover = (360 * Average annual inventory) / Cost price (1)

Period of one inventory turnover = 360 / Inventory turnover (2)

Average annual volume of reserves (most The right way) = Sum of stocks at the end of each business day / Number of business days (3)

Average annual inventory (if only weekly data is available) = Sum of inventory at the end of each week / 51 (4)

Average annual inventory (if only monthly data is available) = Sum of inventory at the end of each month / 12 (5)

Average annual inventory (if only quarterly data is available) = Sum of inventory at the end of each quarter / 4 (6)

Average annual stock (if only annual data are available) = (Stock size at the beginning of the year + stock at the end of the year) / 2 (7)

Monthly, weekly and daily inventory estimates are available for internal analysis, but not for external analysis... Quarterly figures may be available for external analysis.

Notes and corrections:

1. During the year, the value of the indicator may fluctuate (for example, due to a seasonal factor). At the end of the period, the business activity of the company decreases, the volume of inventories, work in progress and stock finished products will be lower, so the period of one inventory turnover may be overestimated. If the company is financial statements at the peak of its business activity, then the inventory turnover may be overestimated, and the period of one inventory turnover may be underestimated. To determine the exact value of the indicator, you must use one of the formulas 3-6.

An example of calculating the period of one inventory turnover:

OJSC "Web-Innovation-plus"

Unit of measurement: thousand rubles.

The period of one inventory turnover (2016) = (360 * (87/2 + 88/2)) / 405 = 77.78 days

The period of one inventory turnover (2015) = (360 * (88/2 + 75/2)) / 487 = 60.25 days

The efficiency of inventory management is declining at Web-Innovation-Plus OJSC. This is evidenced by a significant increase in the period of one inventory turnover - from 60.25 days in 2015 to 77.78 days in 2016. The reason for this trend is the decline in production and sales, while the standards for the formation of inventories remained at the previous level. It is necessary to revise them and work towards increasing the inventory turnover and reducing the period of one inventory turnover.

Everything that lies in the warehouse of a restaurant or moves towards it is a current asset. But these are also frozen funds, the return of which is eagerly awaited by the business owner. To understand how long money is "taken out" from circulation and invested in stocks, turnover analysis is carried out commodity stocks.

If there is a product, then this is certainly good, but only as long as there is not too much of it. The warehouse is full of goods - taxes are paid on the inventory, but it is sold too slowly. Then they say that the turnover of goods is low. But if it is very high, it means that the product is being sold quickly, too quickly. Then the guest, having come to the restaurant, runs the risk of not trying the chosen dish. The answer lies in the ability to analyze and plan inventory turnover.

General concepts

GOODS - products that are bought and sold; it is part of the inventory. A service can also be a product if restaurant guests pay for it (delivery, packaging, storage of valuables, etc.).

INVENTORY is a list of assets (goods, services) of the company, suitable for sale. In a restaurant, inventory is not only the food that is in the warehouses, but also the food in stock, household utensils, and dishes and tablecloths, if you rent them, - anything that can be sold.

If we are talking about the STOCK, then the goods in transit, the goods in the warehouse and the goods in the receivable are considered as such (since the title to it remains until it is paid by the buyer, and theoretically the goods can be returned to the restaurant's warehouse for subsequent sale).

BUT !: to calculate the turnover, the goods in transit and the goods in the receivables are not taken into account - only the goods in the warehouse are important.

AVERAGE COMMODITY STOCK (TZav) - the value, which, in fact, is required for the analysis. ТЗср for the period is calculated according to the formula 1.

ТЗср "=, where (1)

TK 1 , TK 2 , ... TK n - the size of the inventory for individual dates of the analyzed period (in rubles, dollars, etc.);

n - the number of dates in the period.

Example

The calculation of the average inventory (TZav) for the year for a coffee shop is given in table. 1. The average technical specification for 12 months will be 51,066 rubles.

TABLE 1 - Calculation of the average inventory

Inventory amount for the first day of the month

Period ordinal number

formula designation

Formula data

TZ av = (22940 + 40677 + 39787 + 46556 + 56778 + 39110 + 45613 + 58977 + 56001 + 56577 + 71774 + 26939) / (12-1) = 561729/11 = 51066 rubles.

There is also a simplified formula for calculating average balances:

ТЗср "= (balances at the beginning of the period + balances at the end of the period) / 2 (2)

In the above example, ТЗср "will be equal to (45 880 + 53 878) / 2 = 49 879 rubles. However, when calculating the turnover, it is still better to use the first formula (it is also called the average chronological moment series) - it is more accurate.

COMMODITY TURNOVER (T) - the volume of sales of goods and provision of services in monetary terms for a certain period of time. Sales turnover is calculated in purchase prices or cost prices. For example: "The turnover of the restaurant in December was 40,000 rubles." This means that in December, goods were sold for 39,000 rubles, and services were also rendered for the delivery of goods to the house for 1,000 rubles.

If there is a product, then this is certainly good, but only as long as there is not too much of it. The warehouse is full of goods - we pay taxes on the inventory, but it sells too slowly. Then we say - the turnover of goods is low. But if it is very high, it means that the product is being sold quickly, too quickly. Then the buyer, having come to us, runs the risk of not finding the right product. The answer lies in the ability to analyze and plan inventory turnover.

Each manager uses terms such as "inventory", "turnover", "exit", "turnover", "turnover ratio", etc. However, when using economic and mathematical methods of analysis, confusion often arises in these concepts. As you know, exact sciences require precise definitions. Let's try to understand the terminology before we take a closer look at the concept of turnover.

Product- products that are bought and sold; she is part of the commodity material stocks... A service can also be a product if we demand money from our buyer for it (delivery, packaging, payment mobile communications by cards, etc.).

Inventory- This is a list of assets (goods, services) of the company, suitable for sale. If you are in retail and wholesale trade, then your inventory is not only the products on the shelves, but also the goods in stock, supplied, stored or received - anything that can be traded.

If we are talking about stock of goods, then these are considered goods in transit, goods in stock and goods in receivables (since the ownership of it remains with you until it is paid by the buyer, and theoretically you can return it to your warehouse for subsequent sale ). BUT: to calculate the turnover, goods in transit and goods in accounts receivable are not taken into account - only the goods in our warehouse are important to us.

Average inventory(ТЗср) - the value that we need for the actual analysis. ТЗср for the period is calculated according to the formula 1.

Example:

Calculation of the average inventory (TZav) for the year for a company that sells, for example, small household chemicals and household goods, is given in table. 1.

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The average TK for 12 months will be $ 51,066.

There is also a simplified formula for calculating average balances:

ТЗср` = (balances at the beginning of the period + balances at the end of the period) / 2.

In the above example, TZav` will be equal to (45 880 + 53 878) / 2 = 49 879 dollars. However, when calculating the turnover, it is still better to use the first formula (it is also called the average chronological moment series) - it is more accurate.

Turnover(T) - the volume of sales of goods and provision of services in monetary terms for certain period time. Sales turnover is calculated in purchase prices or cost prices. For example, we say: "The store's turnover in December was 40,000 rubles." This means that in December we sold goods worth 39,000 rubles and also rendered services for the delivery of goods to our customers for 1,000 rubles.

The financial success of a company, the indicator of its liquidity and solvency directly depends on how quickly the funds invested in stocks turn into real money.

As an indicator of the liquidity of stocks, we use inventory turnover ratio, which is most often referred to simply as turnover.

This coefficient can be calculated according to different parameters (cost, quantity) and for different periods (month, year), for one product or for categories.

There are several types of inventory turnover:

1. turnover of each item of goods in quantitative terms (by pieces, by volume, by weight, etc.);
2. turnover of each product by value;
3. turnover of a set of items or the entire stock in quantitative terms;
4. turnover of a set of items or the entire stock at a cost.

For us, two indicators will be relevant - turnover in days, as well as the number of goods turnover.

Inventory turnover(ABOUT) or stock circulation rate... The speed with which a product turns around (that is, it comes to the warehouse and leaves it) is an indicator that characterizes the efficiency of interaction between purchases and sales. There is also the term "TRANSPORTABILITY", which in this case is the same.

The turnover is calculated according to the classic formula:

(Balance of goods at the beginning of the month) / (Turnover per month)

But for increased accuracy and correct calculation, instead of the remainder of the goods at the beginning of the period, we will use the average inventory (TZav)

Let's note three important points before we start calculating the turnover.

1. If the company does not have stock, then it makes no sense to calculate the turnover: for example, we sell services (we run a beauty salon or give advice to the public) or we supply the buyer from the supplier's warehouse, bypassing our own warehouse (for example, an online book store).

2. If, unexpectedly for ourselves, we have implemented a large project and sold an unusually large batch of goods under the buyer's order. For example, a company won a tender to supply finishing materials in under construction nearby shopping center and for this project brought a large batch of sanitary ware to the warehouse. In this case, the goods supplied for this project should not be taken into account, since it was the target delivery of the goods already sold in advance.

In either case, the store or company makes a profit, but the inventory in the warehouse remains intact.

In fact, we are only interested in live stock Is the quantity of goods that:

came to the warehouse or was sold during the period under review (that is, any of its movements); if there was no movement (for example, the elite cognac was not sold for a whole month), then it is necessary to enlarge the analysis period for this product;

and also this is the quantity of goods for which there was no movement, but the goods were on balance (including those with a negative balance).

If there was a zeroing of goods in the warehouse, then these days should be deleted from the turnover analysis.

3. All calculations on turnover must be carried out in purchase prices. The turnover is calculated not at the selling price, but at the price of the purchased goods.

Formulas for calculating turnover

Turnover in days

The number of days it takes to sell the available inventory (see Formula 2).

Sometimes it is also called the average shelf life of a product in days. This will tell you how many days it takes to sell average stocks.

Example:

Analyzed the commodity item "Hand cream", as an example in the table. 2 shows data on sales and stocks for half a year.

Let's calculate the turnover in days (for how many days we sell the average stock of goods). The average stock of the cream is 328 pieces, the number of days on sale is 180, the sales volume for six months was 1701 pieces.

Obdn = 328 pcs. (180 days / 1701 pcs. = 34.71 days.

The average stock of cream turns around in 34–35 days.

Turnover at times

How many revolutions does the product make during the period (see formula 3).

The higher the company's inventory turnover, the more efficient its activities are, the less the need for working capital and the more stable financial position enterprises, all other things being equal.

Example:

Let's calculate the turnover in turnover (how many times the stock is sold for six months) for the same cream.

1st option: Image = 180 days. / 34.71 = 5.19 times.

2nd option: Image = 1701 pcs. / 328 pcs. = 5.19 times.

The stock is rotated on average 5 times per six months.

Product inventory level

An indicator characterizing the supply of stocks to a store for a certain date, in other words, for how many days of trade (with the prevailing turnover) this stock will last (see formula 4).

Example:

How many days will the available cream supply last?

Utz = 243 pcs. (180 days / 1701 pcs. = 25.71.

For 25-26 days.

You can calculate the turnover not in pieces or other units, but in rubles or another currency, that is, by value. But the final data will still be correlated with each other (the difference will be only due to the rounding of numbers) - see table. 3.

What does turnover give?

The main purpose of the inventory turnover analysis is to determine those goods for which the speed of the “commodity-money-commodity” cycle is minimal in order to make a decision about their future fate.

To illustrate, consider an example of analysis of the turnover ratio of two goods - bread and cognac, which are part of the assortment of a grocery store (see Tables 4 and 5).

From this table it can be seen that bread and expensive cognac have completely different indicators - the turnover of bread is several times higher than that of cognac. But it is illegal to compare products from different product categories- such a comparison gives us nothing. It is obvious that bread has one task in the store, while cognac has a completely different one, and it is possible that the store earns more on one bottle of cognac than from selling bread in a week.

Therefore, we will compare products within the category with each other - we will compare bread with other bread products (but not with cookies!), And cognac - with other elite alcoholic products (but not with beer!). Then we will be able to draw conclusions about the product turnover within the category and compare it with other products with similar properties.

Comparing the products within the category, we can conclude that tequila has a longer turnover period than that of the same cognac, and the turnover rate is less, and that whiskey in the elite alcoholic drinks category has the highest turnover, while vodka (despite the fact that its sales are twice as high as that of tequila), this figure is less, which, apparently, requires an adjustment of the warehouse stock - perhaps, vodka should be imported more often, but in smaller batches.

In addition, it is important to track the dynamics of changes in turnover in turnover (Obr) - compare with the previous period, with the same period last year: a decrease in turnover may indicate either a drop in demand or an accumulation of goods of poor quality or outdated samples.

Turnover in itself does not say anything - you need to track the dynamics of the change in the coefficient (Obr), taking into account the following factors:

• the coefficient decreases - there is an overstocking of the warehouse;
• the coefficient is growing or very high (shelf life is less than one day) - work "on wheels", which is fraught with the lack of goods in the warehouse.

In conditions of constant deficit, the average value of the warehouse stock can be equal to zero - for example, if the demand is growing all the time, and we do not have time to bring the goods and sell them "off the wheels." In this case, it makes no sense to calculate the turnover ratio in days - perhaps it should be counted in hours or, conversely, in weeks.

If a company is forced to store goods of irregular demand in a warehouse, goods with a strongly pronounced seasonality, then achieving high turnover is not an easy task. To ensure customer satisfaction, we will be forced to have wide range of rarely sold goods, which will slow down the overall inventory turnover. Therefore, the calculation of the turnover for all stocks in the company is incorrect. It will be correct to count by categories and by products within categories (commodity items).

Also for the store, the terms of delivery of goods play an important role: if the purchase of goods is made using its own funds, then the turnover is very important and indicative; if on credit, then own funds you invest to a lesser extent or do not invest at all, then the low turnover of goods is not critical - the main thing is that the loan repayment period does not exceed the turnover rate. If the goods are taken mainly on the terms of sale, then first of all it is necessary to proceed from the volume of warehouse premises, and the turnover for such a store is the last indicator of importance.

Turnover and yield

It is important not to confuse the two concepts - turnover and yield.

Turnover- This is the number of turnovers of the goods for the period.

Leaving- an indicator that says how many days it takes for a product to leave the warehouse. If, when calculating, we do not operate with an average technical specification, but calculate the turnover of one batch, then in reality we are talking about leaving.

Example:

On March 1, a batch of 1000 pencils arrived at the warehouse. On March 31st there were no pencils left in the warehouse (0). Sales are equal to 1000 pieces. It seems that the turnover is equal to 1, that is, once a month this stock has turned around. But it is necessary to understand that in this case we are talking about one party and about the time of its implementation. One batch does not turn around in a month, it “leaves”.

If we calculate by the average stock, it turns out that on average there were 500 pieces in the warehouse per month.

1000 / ((1000 + 0) / 2) = 2, that is, it turns out that the turnover of the average stock (500 pieces) will be equal to two periods. That is, if we delivered two batches of 500 pencils, each batch would be sold in 15 days. In this case, it is incorrect to calculate the turnover, because we are talking about one batch and the period when the pencils were sold to zero balance is not taken into account - perhaps this happened in the middle of the month.

To calculate the inventory turnover ratio, batch accounting is not needed. There is the arrival of the goods and the consumption of the goods. Given a period (for example, 1 month), we can calculate the average stock for the period and divide the sales volume by it.

Turnover rate

One often hears the question: “What are the turnover rates? How is it correct? "

But in companies there is always the concept of "TURNOVER RATE" and each company has its own.

Turnover rate- This is the number of days (or turnovers) for which, in the opinion of the company's management, the stock of goods must be sold in order for the trade to be considered successful.

Each industry has its own norms. Some companies have different regulations for different groups goods. So, for example, our trading company used the following rates (turnover per year):

• construction chemistry - 24;
• varnishes, paints - 12;
• plumbing - 12;
• facing panels - 10;
• roll floor coverings - 8;
• ceramic tiles - 8.

In one of the chain supermarkets, the turnover rate for the non-food group is divided on the basis of ABC analysis: for goods A - 10 days, for goods of group B - 20 days, for C - 30 days. the stock of goods in the store is made up of the turnover rate plus the safety stock.

Also some specialists in financial analysis use Western norms.

Example:

"Usually traders of industrial goods in Western enterprises have a turnover ratio of 6, if the profitability is 20-30%," E. Dobronravin writes in the article "Turnover ratio and service level - indicators of inventory efficiency." - If the profitability is 15%, the number of revolutions is approximately 8. If the profitability is 40%, then a solid profit can be obtained with 3 revolutions per year. However, as noted earlier, it does not follow that if 6 rpm is good, then 8 or 10 rpm is better. These data are indicative when planning generalized indicators ”.

Henry Assel writes in his book Marketing: Principles and Strategy: "For businesses to operate profitably, their inventory must be turned over 25-30 times a year."

An interesting method for calculating the turnover rate is offered by Dobronravin E. He uses a Western design that takes into account many variable factors: the frequency with which the goods are ordered, the transportation time, the reliability of delivery, minimum dimensions order, the need to store certain volumes, etc.

What is the optimal number of inventory turnovers that can be included in the plan of a particular enterprise? Charles Bodenstab analyzed a large number of companies using one of the SIC systems in inventory management. results empirical research were summarized in Formula 5.

f in the proposed formula is a coefficient that summarizes the action of other factors that affect the theoretical number of revolutions. These factors are as follows:

• the width of the assortment in storage, that is, the need to store slowly turning stocks for marketing purposes;
• larger than required purchases in order to receive volume discounts;
• requirements for a minimum purchase lot from a supplier;
• unreliability of the supplier;
• economic order size (EOQ) policy factors;
• overstocking for promotion purposes;
• using a delivery in two or more stages.

If these factors are at the usual level, then the coefficient should be around 1.5. If one or several factors have an extreme level, then the coefficient takes on the value of 2.0.

Example:

The store has factors (they are indicated in Table 6) applied for different suppliers.

There are several examples of how the turnover rate will look when the formula is applied (see Table 7).

This means that if on average we import goods 3 twice a month (0.5) and carry it for 1 month, while some factors (perhaps the supplier is unreliable) are imperfect, then the turnover rate can be considered 9.52. And for item 5, which we rarely import (it takes a long time, and the influencing factors are very far from ideal), it is better to set a turnover rate of 1, 67 and not demand too much from its sale.

But practice Western companies very different from Russian conditions - too much depends on logistics, purchase volumes and delivery times, supplier reliability, market growth and demand for the product. If all suppliers are local, and the turnover is high, then the coefficients can reach 30-40 turnovers per year. If supplies are intermittent, the supplier is unreliable and, as often happens, the demand fluctuates, then for a similar product in a distant region of Russia the turnover will be 10-12 turns per year, and this is normal

Turnover rates will be higher for small businesses working for the end consumer, and much less for enterprises producing products of group A (means of production) - due to the length of the production cycle.

Again, there is a danger of rude adherence to the standards: for example, you do not fit into the standard for turnover and begin to reduce the safety stock. As a result, there are failures in the warehouse, there is a shortage of goods and an unsatisfied demand. Or you start to reduce the order size - as a result, the costs of ordering, transportation and handling of goods increase. Turnover is on the rise, but availability problems remain.

The rate is a general indicator, and you should react and take action as soon as some negative trend is detected: for example, the growth of stocks outstrips the growth of sales, and simultaneously with the growth of sales, the turnover of stocks has decreased.

Then you need to evaluate all commodity goods within the category (perhaps some individual items are purchased in excess) and make informed decisions: look for new suppliers that can provide more short time deliveries, or stimulate sales for this type of product, or give it a priority place in the hall, or train sellers to advise buyers on this particular product, or replace it with another better-known brand, etc.

Buzukova E.A.,
assortment management consultant,
head of the Super-Retail club

"Sales business / Sales" / No. 5 May 2006 / Toolkit

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Inventory turnover ratio is an indicator of development, replacement of enterprise reserves by moving financial resources from the category of stocks to production and / or sale. Reveals the number of use of the average available deposits of products for the analyzed period.

Inventory turnover is a priority criterion for the overall business environment and should be carefully considered. The business activity of the company directly depends on this indicator - the faster the money returns to the balance sheet of the enterprise in the form of income from sales of finished products, the higher it will be.

Any company develops an individual plan for calculating the circulation of reserves, the purpose of which is the same - to understand how quickly the average stock passing in the chain of commodity circulation (in the warehouse) will be sold, as well as the rate of return of the invested money.

Characteristics of the indicator

The analysis of the turnover indicator is carried out within a single market segment, in dynamics for the organization in question, which can characterize its state:

• the rise- indicates the exhaustion of the warehouse assortment, which often leads to malfunctions. Comparing previous periods, the result may turn out to be too high: means insufficient availability of stocks;
• decline- expresses the accumulation of surplus stocks, unproductive warehouse management, surplus of unusable materials. When compared with the previous year, the result is probably too low: the reserves are not competitive, or too large.

In addition, the inventory turnover ratio shows the marketing strategy of a legal entity.

Low turnover is characteristic of super-profitable enterprises than for companies with normal profitability.

When striving for a high turnover of reserves, one must remember that a decrease in inventory increases the risks of shortage, and the level of service for buyers decreases.

You need to find the best approach that allows you to effectively use your savings, as well as provide customers with the required security. To determine this, you need:

• to establish the turnover standard, which is optimal for the implementation of the priority goals of the enterprise, to assess its implementation;
• to trace fluctuations of the reversibility in dynamics.

When the enterprise has a credit settlement system, the main criterion for assessing productive activity is the ratio of the credit line to the circulation of the presented goods.

The loan term may be longer, then the situation is positive: the company will return the invested money quickly, until the moment of payment for the goods.

The calculation of the stock turnover rate is made according to the norms - the number of cycles or days during which the stocks of products must be sold in accordance with the set goals of the enterprise.

The formula for the balance of calculating the indicator of the turnover of reserves is as follows:

In calculating the turnover ratio of inventories, instead of profit, the cost of production is sometimes used, which is expressed in the formula:

The higher this result, the more rational is production management - the need for working capital is minimized.

Stock parameters

Period- applies to perishable products with an exact indication of the expiry date;

Times- the number of transactions for the sale of goods:
Trade turnover for the period- the value of prices according to warehouse accounting;

Average inventory for the period- reveals the amount of products that are in warehouse for a set time. With equal measurements of the time interval, the formula is used to calculate it:

In calculating indicators with unequal time intervals, the chronological weighted algorithm is used:

At all enterprises, individual decisions are made to determine the average for the accounting of days when goods are out of stock. It is not always necessary to exclude zero balances - they will complicate the analysis of the inventory turnover rate.

Production management considers the fundamental aspects of the formation of reserves, respectively, the optimal ratio of the degree of risk and profitability of the enterprise:

Conclusion

The price of a business is sometimes determined by cases where some products have poor turnover, which is not an omission or a mistake in managing the work. Such moments cannot be adjusted.

For example, a supplier may go on vacation, closing the plant for maintenance for several months, in connection with which the company buys raw materials in stock for the period of "unplanned failure" or other factors.

The formula of the inventory turnover ratio on the balance sheet reflects the efficiency of their use during the operation of the enterprise in the process of making a profit.

The inventory turnover ratio is a relative value, that is, it can be used when comparing several periods of the company's operation. The formula for the balance sheet turnover ratio calculates the number of revolutions that stocks make during the business process.

There are 2 formulas for calculating the turnover indicator, which contain the following components:

• Indicator of net sales (income),
• Cost of goods sold,
• Inventory value (for example, the average for the year in the case of calculating the annual inventory turnover).

The formula for the balance sheet turnover ratio

The formula for the inventory turnover ratio on the balance sheet is calculated by dividing the amount of sales proceeds by the average amount of inventory:

KOZ = OR / Zsr.,

В– proceeds from the sale of products (rubles);

Zsr. - the average amount of reserves (rubles).

When calculating the inventory turnover, use accounting statements enterprises.

Inventory turnover ratio - formula

The formula for the balance sheet turnover ratio is as follows:

KOZ = line 2110 / line 1210

To calculate the denominator of the formula, you need to determine the average amount of the amount of inventory for a certain period (month, quarter, year). The calculation is made by adding the amount of inventory at the beginning and end of the period (for example, a year) and dividing this amount by 2.

Formula for calculating the average inventory:

Зср = (Знп + Зкп) / 2

Zsr = (1210np + 1210kp) / 2

Here 1210np and 1210kp are the corresponding lines at the beginning and end of the period.

Formula of inventory turnover through cost price

Some companies calculate inventory turnover in accordance with the cost of goods. The formula takes the following form:

KOZ = Seb / Zsr,

Here KOZ is the inventory turnover ratio;

Seb - the cost of goods sold (rubles);

Зср - average cost of stocks (rubles).

This method of calculation in our country is more popular than the calculation of revenue.

Standard value of turnover

The inventory turnover indicator does not have specific standards that would be accepted by all enterprises. The coefficient is most often used for calculation and comparison for enterprises of the same industry, as well as for tracking dynamics for one specific enterprise.

In the case of a decrease in the inventory turnover rate, we can talk about the following situation:

• Excess of accumulated inventory,
• Low efficiency of inventory management,
• Excess of unusable material, etc.

Efficiency is not always reflected by high turnover, as this can be a sign of low inventory levels, which most often can lead to an interruption in the production process.

For enterprises operating with high level profitability, low turnover is inherent, and for enterprises with a low rate of return, on the contrary.

Examples of problem solving

Definition

Inventory turnover(inventory turnover) shows how many times during the analyzed period the organization used the average available inventory balance. This indicator characterizes the quality of stocks and the efficiency of their management, allows to identify the remains of unused, obsolete or substandard stocks. The importance of the indicator is connected with the fact that profit occurs with each "turnover" of stocks (ie, use in production, operating cycle). Please note that in this case, stocks mean both commodity stocks (stocks of finished goods) and production stocks (stocks of raw materials and materials).

Calculation (formula)

Inventory turnover can be calculated in two ways.

1.as the ratio of the cost of sales to the average annual inventory balance:

Inventory turnover (ratio) = Cost of sales / Average annual inventory balance

The average annual balance is calculated as the sum of inventories on the balance sheet at the beginning and end of the year, divided by 2.

Inventory turnover ratio

as the ratio of sales proceeds to the average annual inventory balance:

Inventory turnover (ratio) = Revenue / Average annual inventory balance

Both in Western and in Russian practice, you can find both calculation options. The advantage of the 2nd option is that it allows you to exclude the influence of the accounting policy, according to which the cost of sales can be formed taking into account administrative expenses or with their reflection on a separate line of the report on financial results... That is, organizations can be compared by this indicator regardless of the model they have adopted. accounting costs. Probably, in order to eliminate this problem, Rosstat RF takes the total cost of goods sold as the cost of sales, which includes, in addition to the direct cost of sales, administrative and commercial expenses.

Along with the turnover ratio, turnover in days is often calculated. In this case, this means how many days of operation of the enterprise the existing stocks will last.

Inventory turnover in days = 365 / Inventory turnover ratio

Normal value

There are no generally accepted standards for turnover indicators; they should be analyzed within one industry and, even better, in dynamics for a particular enterprise. A decline in inventory turnover may reflect an accumulation of surplus inventory, ineffective warehouse management, and an accumulation of unusable materials. But high turnover is not always a positive indicator, since it can talk about the depletion of warehouse stocks, which can lead to interruptions in the production process.

In addition, inventory turnover depends on the marketing policy of the organization. Organizations with high profit margins tend to have lower turnover rates than firms with low profit margins.

About inventory turnover at English language read the article "Inventory Turnover".

Inventory turnover shows how many times during the analyzed period the organization used the average available inventory balance.

This indicator characterizes the quality of stocks and the efficiency of their management, allows to identify the remains of unused, obsolete or substandard stocks.

Inventory turnover

The importance of the indicator is connected with the fact that profit occurs with each turnover of inventory (i.e. use in production, operating cycle). Please note that in this case, stocks mean both commodity stocks (stocks of finished goods) and production stocks (stocks of raw materials and materials).

The higher inventory turnover company, the more efficient production is and the less the need for working capital for its organization.

Inventory turnover calculator

Online calculator for calculation financial performance inventory turnover ratio

The formula for calculating the inventory turnover ratio

Average stock balance = (Stock at the beginning of the period + Stock at the end of the period) / 2

Inventory turnover = Cost of goods sold / Average inventory balance

An example of calculating inventory turnover

It is necessary to compare the value of the inventory turnover ratio for two enterprises with the following financial results:

• the cost of goods sold for enterprise A was 923 thousand, and for enterprise B 1,072 thousand.
• the amount of reserves is 429 thousand rubles and 398 thousand rubles, respectively.

Let's calculate the value of the inventory turnover ratio for enterprise A:

ITRа = 923 / 429 = 2,15152.

Let's calculate the value of the inventory turnover ratio for enterprise B:

ITRb = 1072 / 398 = 2,69347.

Let's compare the values ​​of the coefficients:
ΔITR= ITRb / ITRа

= 1,25278

Enterprise B has a 25.27% higher inventory turnover ratio than enterprise A.

Synonyms: Inventory Turnover Ratio, Inventory Turnover, Asset Turnover Ratio, Inventory Turnover Ratio, IT, Turnover of a Stocks, Inventory Turnover, Inventory Utilization Ratio.

Inventory turnover

In trade, goods are constantly being sold and stocks are replenished. The faster this process is carried out, the less circulating capital is needed for its implementation, the lower is the cost of circulation. Therefore, the speed of circulation of goods is an important parameter of the effectiveness of trade activities.

To characterize the turnover of goods, two indicators are used:

- time of circulation of goods in days;

- the speed of circulation of goods in times

These indicators are calculated using the following formulas:

where. T is the duration of one turnover in days;

K - the coefficient of turnover of goods in the reporting period in times;

С - average inventory ;. D - the number of days in the period. A - turnover

Average monthly stocks of goods are determined by a simple average in terms of the amount of stocks at the beginning and end of the month, divided into two average quarterly and average annual stocks are calculated using the formula with a chronological average:

where 3 "is the amount of stocks at the end of the i-th period

To determine the average quarterly stocks, data for four monthly dates is used. Average annuals are determined for 13 monthly, or 5 quarterly balances of goods. The more components are used to determine average stocks, the more accurate is the calculation of the turnover indicators of goods.

The number of days in periods is conventionally assumed for a month - 30, a quarter - 90, a year - 360, regardless of the actual number calendar days in them

The indicator of the turnover time of goods in days expresses the time during which the average inventory turned around. Whereas the rate of circulation of goods in times shows how many times the average stock of goods has turned around for e and a period d.

These indicators characterize the turnover of goods in two aspects for the same period. Therefore, there is a relationship between them, which is expressed by the formulas:

Knowing the value of one indicator of the turnover of goods, these formulas can be used to calculate the second

In the process of analysis, they use not only the actual indicators of turnover calculated for the reporting or previous periods (years, quarters), but also the planned indicators. The planned turnover of goods is calculated on a quarterly basis. The turnover ratios are calculated on a quarterly basis by the stock ratios in days. If you analyze the data for the year, then to find the planned average annual stocks, the norm is taken. The IVI inventory is four quarters in total and divided by four. To find the planned turnover of goods in the reporting year, the normative average annual stocks are divided by the planned one-day turnover of this period.

Attention should be paid to the fundamental difference between the content of the indicators "turnover of goods" and "state of inventory in days to turnover" Although both of them are expressed in days, however, the turnover of goods is calculated over the period and shows the average duration of stay of goods in the form of inventory, while stocks of goods in days are calculated for a specific date and show the level of supply of goods to fight stocks, or for how many days of trading these stocks will be enough to clear out the stocks.

The analysis of the turnover of goods is carried out as a whole for retail system of the regional consumer union, consumer society or other enterprise, as well as in the context of product groups. In the analysis, the actual indicators of the turnover of goods are compared with the planned and baseline indicators. They find deviations and determine what caused these deviations, that is, calculate the influence of factors on the change in the turnover of goods and iv.

The deviation of the actual circulation time of goods in days from the planned one with a "minus" sign means an acceleration of turnover, because the duration of the stay of goods in the state of inventory decreases. Conversely, the deviation of this indicator with a plus sign indicates a slowdown in turnover and turnover.

The calculation of the turnover of goods in the retail trade of the consumer society is shown in Table 36

The data in Table 36 show that the duration of the circulation of goods in the retail trade of the consumer society in the reporting year was 56.1 days, while the plan was 59.1 days; the turnover of goods accelerated by 3 days (56.1 +59.1). However, for non-food items it slowed down by 0.2 days, and for food items it accelerated by 1.7 days. To find out the reasons for these deviations, it is necessary to study the influence of factors on the change in the turnover rate of goods.

... Table 36

turnover of goods in retail. CONSUMER. SOCIETIES. In the reporting year

The rate of circulation of goods in days for the whole trading enterprise is formed under the influence of two complex factors:

- changes in the structure of trade;

- turnover of individual products and product groups

The rotation speed of individual products differs significantly.

Therefore, an increase in the turnover of the share of goods with a higher level of turnover, all other things being equal, has a positive effect on the general indicator of the turnover of goods. Conversely, an increase in the turnover of the share of goods with a longer term of sale leads to a slowdown in turnover.

Turnover food products in general, significantly higher than non-food. Therefore, an increase in the share of food products in the turnover commercial enterprise contributes to the acceleration of turnover, and non-food - deceleration.

At the same time, the turnover of individual goods and commodity groups depends on the influence of changes in the volume of goods turnover and average stocks of these goods. The sequence of the influence of the factors considered on the turnover of goods of a trading enterprise is shown in Figure 33.3.

Given this sequence of factors, the method for calculating their influence on the turnover of goods includes two stages. At the first stage, the influence on the change in the turnover of goods of two complex factors is calculated - - the structure of the turnover and the turnover of individual

goods and product groups. At the second stage of the analysis, the influence on the turnover of certain groups of goods is determined by the volume of their turnover and average stocks

Figure 33. The order of influence of factors on the turnover of goods

It should also be noted that among the factors affecting the structure of trade, the structure of commodity stocks plays an important role. The influence of this factor is studied in the course of the analysis of the total volume and flow of the structure to the turnover.

To determine the influence of the first two factors on the turnover of goods for a trading enterprise as a whole, the value of the turnover indicator is calculated by the method of percentage numbers according to the formula:

... VSK =. V. And ^. ICC (320)

where. VSK - the time of circulation of goods in days at a planned (basic) volume of goods turnover, planned (basic) average inventories and the actual structure of goods turnover;

... Te0 - planned (basic) turnover of goods for the / -th commodity group;

Ci1 - the share of the i-th commodity group in the actual volume of trade;

NS - number of product groups

The influence of factors on the deviation of the indicator of the turnover of goods of the trading enterprise from the planned or baseline indicators is calculated as follows:

ZN (s) =. VSK -.

Inventory turnover ratio in days (formula)

ZN (T) = ... T -. VSK , (322)

where. DT (S) - the influence of the structure of trade;

DT (T) - the influence of the turnover of individual goods and product groups;

T1 and. Т0 - actual and planned (basic) duration of one turnover in days

The calculation of the influence of these factors on the change in the indicators of the turnover of goods in the retail trade of the consumer society is shown in Table 37

The table shows that the planned indicator of the turnover of goods, expressed by the actual structure of the retail trade turnover of the consumer society, amounted to 57.1 days (5713.4: 100)

The share of food products in the turnover increased by 2.4% compared to the plan and, accordingly, the share of non-food products decreased. These structural changes contributed to the acceleration of the turnover of goods in times of small trade in the consumer society for 2 days (57.1 - 59.1). While the change in the turnover of certain groups of goods - its acceleration in the group of food products by 1.7 days and the slowdown in non-food products by 0.2 days - contributed to the acceleration of the turnover of all goods by 1 day (56.1 - 57.1). So both factors had positive impact on the change in the general indicator of the turnover of goods.

As already noted, the speed of rotation of individual goods depends on the volume of their sales and the amount of average stocks. Overfulfillment of the turnover plan has a positive effect on the turnover of goods. Then I, as the presence of excess stocks leads to a slowdown in the turnover of goods, and their understatement by the standard contributes to the acceleration of turnover. However, understated inventories can have a positive effect on convertibility only if they do not affect the volume of goods turnover. And this can be provided if the underestimated stocks were compensated by an improvement in the supply of goods by increasing the frequency of their delivery, ensuring its rhythm, fulfilling the orders of stores not only in volume, but also in the assortment.

If the underestimated inventory was formed due to insufficient receipt of goods, the presence of interruptions in supplies trading network, narrowing the assortment, then in this case the acceleration of the turnover of goods due to the action of this factor cannot be considered as a positive phenomenon.

To study the influence of factors on the turnover of individual goods or product groups, table 38 is made

... Table 37

Calculation of the influence of factors on the turnover of goods in retail. CONSUMER. SOCIETIES. PER. REPORTING. YEAR

Product groups	Turnover structure,% of total			Turnover of goods, days			Percentage numbers (gr3 x gr5)	Influence of factors on the change in the turnover of goods in days
		actually	deviations		actually	Deviation (- acceleration slowdown)		turnover structures	turnover of certain product groups
1	2	3	4	5	6	7	8	9	10
Foodstuffs
Non-food products

... Table 38

Calculation of the influence of factors on the turnover of certain groups of goods c. RETAIL. TRADE

CONSUMER. SOCIETIES. PER. REPORTING. YEAR

Product groups	Turnover of goods, days
		with actual average stocks and planned turnover	actually	deviations from the plan
					including by changing
1	2	3	4	5	6	7
Foodstuffs
Non-food products

adjusted turnover of goods with actual average annual stocks and planned turnover (column 3 of table 38) is calculated for each group of goods according to table 36

The calculation shows that the acceleration of the turnover of food products was positively influenced by the overfulfillment of the turnover plan, and negatively influenced by the presence of excess stocks. For non-food products, the slowdown in the turnover of goods was admitted due to a significant under-fulfillment of the turnover plan. While the underestimation of inventories relative to the standard for this group of goods contributed to the acceleration of turnover. However, this influence cannot be assessed positively, because the underestimation of stocks of non-food products according to the standard was one of the reasons for the non-fulfillment of the turnover plan for this group of goods in the reporting period.

The same methodology is used to analyze the turnover of goods in individual stores. However, there is always data on the volume of goods turnover and stocks by groups of goods, which limits the possibilities of analysis.

The acceleration of the turnover of goods is facilitated by measures aimed at increasing the volume of goods turnover and normalizing inventories