How to Calculate Inventory Turnover
ฝัง
- เผยแพร่เมื่อ 14 ก.ค. 2013
- This video explains how to calculate Inventory Turnover and discusses why it is an important measure of a firm's performance.
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this channel is saving my career
+Jose Interiano This comment brought a smile to my face. Sometimes I wonder how many talented people decide not to major in business after taking an accounting or finance course. I'm really glad you found the video helpful and that you're doing well! Best wishes
Lmao...yes! Same here.
@@Edspira this channel is saving my MBA financial management course. Thank you sooo much from Taiwan!
Thank you so much for your very step by step detailed videos about the inventory system. I am currently taking an accounting class and it is very difficult and easy to forget once you move on. Your FIFO/LIFO/AVG/Ending Inventory videos really helped me in my class this week. Keep these videos coming.
I wish my professors taught like this. Thank you for all your videos! It really helps!
My pleasure, hope your life is going well!
Very good explanation. I'm doing a financial analysis for a graduate level program and needed a refresher on some of these liquidity, solvency & profitability ratios. Thank you for getting right to the point!
Thank you so much! I'm science/health based and just stepped into a different role at my company. This is helping me manage so well. I really appreciate it
A perfect explanation . It helped me to solve 1 doubt raised by my "Industrial Management" student. Thank you.
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Good to see how fast and often a business can sell their inventory. Great explanation!
I wish I found this channel before dropping my cost accounting class. But you are helping me a ton in my financial accounting class! Thanks you!
Great. I'm happy to help!
Thanks so much, sir. I've been staring at this textbook not understanding, but this video helped so much
You're very welcome!
A very good and simple explanation, easy to follow. thank you.
this video just saved my life, oh my God this is very comprehensible
oh my god! I never understood economics much better than this day with this video, GOD BLESS YOU!
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just perfect explanation. thanks a lot. economics is not my subject but needed to learn basics for construction management.
Great!
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Happy to help!
Thank you so much. it was very helpful
Explained very well. Thank you!
Thank you so much! love your channel and you make things easy to udnerstand
I need help. I'm working on an assignment where the beginning and ending inventory are not given. All it says is the company uses the LIFO method and the merchandise inventory given is "Merchandise Inventory at LIFO Cost". I'm not sure how to figure out which is the beginning inventory and which is the ending inventory. Do I just use the year before the current year as the beg. inventory and the current year as ending inventory to figure out average inventory?
thanks for making my concept crystal clear
Really excellent and clear! Thank you!
Thank you so much for sharing this,it helps me lot ,my mind so stress thinking all about how ,cause base in our prof. example i cannot understand but this one is more clearly for me the best one
I'm glad it was helpful-- thank you for the kind comment!
+Education Unlocked welcome sir, wish you never stop sharing your knowledge. God bless to you
Thank you. I had a problem solved but could not comment on the caculations. Now I think I have to reveal the implications of the answers' numbers.
great explanation. thank you
simple and clear, thank you so much, it helped me a lot))
Thank you!
Great channel. Thank you for breaking down these terms in ways that us laypeople can understand.
Thanks Alex!
Inventory valuation policy - I need to find this information, what I found is "Valuation of Inventory" in note is it the same. how to find the "nventory valuation policy" in our annual report. Thanks
thank u this video helped me so much
When he says move inventory, does he mean selling it ?
How do we calculate Inventory period if the cost of goods sold is a negative number in the income statement?
How is the COGS higher than the beginning or ending inventory?
I learnt a lot, thank you so much
Thank you so much!!!!
Really helped, thank you😭😭
THANK YOUUUUU!!!!!! Explained very well !!!
Glad you liked it!
Well explained
Thank you!
Thank you, thank you!
Thank you, thank you, thank you!
its very simple thank you really you are good person ❤️❤️❤️❤️❤️❤️
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If I need to look at it quarterly (Jan-Mar) and so one, do you take the ending inventory in Jan + beginning inventory in March and divide by 2?
Yes this quarter divided by last quarters inventory, then divided by the numbers of days in that period instead of 365 (for the year model)
Thank you!!!!
Thank you so much 😊😊😊
I just started learning this shit. I'm bad with numbers. If say you buy shares valued at 2.4 and spend $100 and it goes up to say 2.8 shares how do you work out how much you earn? I'm really bad lol
So cost of goods sold would be the total cost of the goods to sale, I got that. But as far as the beginning and ending inventory amounts, is this minus the cost of goods?
The ending inventory does not include any goods that were sold during the period. Let's take a retailer for example:Beginning Inventory + Additions to Inventory - Cost of Goods Sold = Ending InventoryHope this helps!
Is the inventory price? How can that be less than cogs?
How come the ending inventory is higher than the beginning? Does the company only purchase not sell?
Of course the company sells. Otherwise it won't be in business. It just so happened that his goods available for sale (purchases including beginning inventory) for the year is greater than his sales for the year.
Beginning Inventory + Purchases - Cost of Goods Sold= Ending Inventory
Love u man
thank you so much lovely
Thanks
What if COGS is negative?
How to find Depreciation (amortization) policy in annual report ?
Information about a company's depreciation policy (e.g., the estimate useful life) would be found in the notes to the financial statements
Beginning and inventory of work in process or finished goods?
total inventory
what if the beggining of inv was 1 and end inv was 1. this will mean that my inventory turns 14 700 times? that's stupid approach. I might bought something on the middle and sell it the next day. so my turnover will be 1 !, but because the time frames you will be unable to see it
I have a problem here: The net income of Slim Company substantially increased from P656,250 in 2008 to P1,890,000 in year 2009. Consequently, the rate of return on current assets increased from 25% in 2008 t0 30% in 2009. Likewise, current assets turnover increased to 2.87 turnover in 2009 from 2.45 turnovers in 2008.
Required: compute the following in year 2009
1. average investment in current assets
2. the cost of goods sold and operating expenses including depreciation
Can anyone help me to solve this?
I'm not understanding the theory behind why we divide cost of goods sold by inventory? Like i get it mechanically but not logically (I'm stupid) why are we diving those two things?
You aren't stupid. It's easier when you are using it in real life. ...
I didn't find the beginning and ending inventory in annual report. how to find it
Find the balance sheet in the annual report, then look at the balance sheet date. For example, let's say the balance sheet date is dated December 31, 2021. The inventory listed in the balance sheet would be the ending inventory as of that date (December 31, 2021). The beginning inventory would be the inventory listed for the prior balance sheet date (the inventory listed as of December 31, 2020).
@@Edspira Thanknyou@
What if you are not given a ending inventory
yes exactly?
what if there is no opening inventory?
TOUQEER KHAN you may take the current inventory and divide by the average units sold per day. In this way you gonna have the days on hand that means quite the same turn over math. 🇧🇷
What if COGS is not provided
+MonsterMissyy I'm wondering too.
if we have given material inventries $40000 . closing inventory of material is 50%of opening inventory then closing inventory of material is ________.
Answer:
opening inventory=26667
closing inventory =13333
How ❓🤔
please 🙏 give me complete solution with formula
If i just have one inventory?
If you only know the inventory for a single point in time, then you can't calculate the average inventory and just need to use the inventory figure you have
@@Edspira okay thanks
@@Edspira legend still replies to a video from 9 years ago
@@MotorMemos thank you my friend!
Lol I was just helping student I account till grade 9 from 🇿🇦
better than kaplan
I greatly appreciate that!
Everything is scrambled and I can't see anything...WTF?
Damn... maybe I will pass accounting.
Hang in there!
Thanks