Publication number: ELQ-83756-1
View all versions & Certificate
Financial Ratios Analysis: Inventory Management
This video will analyse and explain the inventory turnover ratio, helping you track and manage your stock more easily
This video is broken down into three key learning points, giving you the tools to go ahead and track your inventory and inventory turnover ratio more easily. The three key points that this video will teach you are: the understanding of the inventory turnover ratio, how to find the information that can be used to calculate the investment turnover ratio, as well as how this ratio can be applied to a practical business example.
Kieran shows how to calculate this equation to establish your business' inventory turnover ratio. The equation is worked out by dividing the business' inventory, divided by the cost of sales and then multiplied by 365 days.
Kieran then explains where the required information to complete this equation can be found. He shows how you can use your business' income statement in combination with the balance sheet to find the cost of sales and the inventory or stock figure which can be found in the balance sheet.
This information is then processed and used in a model business example. Using this business model Kieran demonstrates step by step how, using the figures provided, you can calculate your business' inventory turnover ratio.
He then goes on to explain what can be learnt from the results and how they can be used. The result shows you the average number of days that your stock is held for and as such, this tool will show you whether your inventory management is effective or not.
This Best Practice includes
1 Video File
Add to bookmarks
- Be the first to review this Video File
Write a review
People using this Best Practice also downloaded
Inventory Management Assumptions - FIFO, LIFO and Average Cost MethodsThis video demonstrates the different methods of inventory tracking and accounting inventory assumptions.fifoinventory managementinventory trackinggross profitstock management365freeby Stefan Ignatovski
Inventory Tracking Excel Template - Multiple LocationsManage inventory that moves back and forth between multiple locations (up to 21).inventory managementinventory trackingmultiple locationssku tracking4,756add_shopping_cart$45.00by Jason Varner
Inventory Analysis and ManagementInventory balance movements, days inventory outstanding (DIO), turnover, seasonality, aging analysis, planning ordersstockdue diligenceinventoryinventory managementinventory turnover607add_shopping_cart$25.00by Andrei Okhlopkov
Retail Inventory Management TemplateDetailed, easy to use template for managing your business' inventorysalescalculatorinventory templateinventory managementretail inventory5,087add_shopping_cartfreeby Alan Friedman
Warehouse Inventory Management Excel TemplateExcel template for warehouse inventory tracking and managementtemplateexcelinventory managementstock managementinventory tracker23,148add_shopping_cartfreeby App Sheet
Customer Invoicing and Inventory Management Excel ModelA complete business invoicing system with product/service, customer and inventory management.inventory managementcrmexcel invoice templatecustomer invoicingsales reporting1,772add_shopping_cart$26.00by Business Spreadsheets
Inventory Management and Analysis best practice with dynamic chartsInventory Management and Analysis best practice. Useful to the Management team as well as to external financial analyst.inventoryinventory managementinventory analysisdiocountback method1,157add_shopping_cart$30.00by HEURTEBIZE
Inventory Valuation Model - FIFO Method of Valuing InventoryAllows to know the transactional breakup of Closing Stock after considering sales made for that period.inventory managementinventory valuation model371add_shopping_cart
Sausage Casings' Transactions SpreadsheetThis template will help you to manage your inventory in purchasing, return and resale transactions...purchasingreturninventory managementsausage casingsresale183add_shopping_cartfreeby Ilgar Zarbaliyev
Stock & Inventory TrackerMonitor your inventory thanks to this Tracker. Planning, tracking and managing your inventory has never been easier.stockinventoryinventory managementinventory trackerexcel tracker801add_shopping_cartfreeby Someka
Any questions on Financial Ratios Analysis: Inventory Management?
The user community and author are here to help. Go ahead!