Instruction

1

**The turnover**

**of the goods**you can count in days or in times. In the first case, the turnover shows how many days it takes for sales average inventory. It is defined as the ratio of product of average inventory and number of days in the month to trade over that period. For example, the average stock of washing powder was 160 units and the sale of 320 units. So the turnover will be: 160*31/320 = 15,5 (days), i.e. the need for 15.5 days to sell the average stock of this powder.

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Note that by itself, the turnover ratio does not allow to draw any conclusions. Analyze its dynamics, for example, if turnover was 10 days and was 15, it talks about the need to reduce the quantity of imported

**merchandise**or to increase sales. If, on the contrary, this indicator decreased, the product began to turn around faster.3

Rate ratio turnover in days and the credit period for the goods. If the loan is granted for 30 days, and the turnover period of 15 days, so during this period we will refund the invested funds and will be able to pay off her debt. If the loan is granted for 10 days, and the turnover amounted to 15 days to return the loan, we will have to use borrowed money, because investing in this product has not yet come back.

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Another conclusion, which you can do by turnover to estimate the frequency of replenishment. When the turnover

**of goods**in 15 days stock should be replenished twice a month.5

**Turnover**times indicates how many times per period the product turned, i.e. has been sold. It is calculated as the ratio of trade over the period to the average stock

**of goods**during this period. For example, the stock of washing powder was 160 units and the sale of 320 units, so the turnover will be equal to: 320/160 = 2, i.e., the stock

**item**will be fully implemented two times per month.

# Advice 2 : How to calculate turnover

The turnover ratios are the efficiency ratios of the company. They expect economic services and credit institutions to assess the effectiveness of the use of the entity's existing assets. In this case, often counting five main factors of turnover.

Instruction

1

To calculate

**the turnover**of assets, divide net profit for the period at the end of the asset balance. The meaning of this factor is simple: the value obtained will show how many times a period is a full cycle of the turnover of all assets. Also it is calculated to see how much money is brought in each unit of assets.2

The turnover ratio of inventories – inventory (goods, products) - reflects the speed of implementation of these resources. To calculate

**the turnover of**inventory is possible by dividing the cost of goods sold on the average annual value of inventories. For the transfer coefficient in days divide the number of days in the period on the indicator. Than this ratio the higher the better, because it directly reflects the liquidity of the TMZ company.3

Turnover ratio of accounts receivable the debt of the company indicates how many times receivables are turned into real money in the intervening period. To calculate

**turnover**, divide net profit by the amount of receivables.4

To calculate

**the turnover**of accounts payable, divide cost of sales by the amount of the debt. Both the turnover rate of debt can be calculated in days. To do this, divide the number of days in the period on the indicator. Thereby you will see how many days it takes the company to pay the receivables or the repayment of debts.5

Turnover ratio of fixed assets shows the level of investments in fixed assets and number of funds, which brings each unit of funds. To calculate

**the turnover**of fixed assets, divide the net profit on average for the period value of fixed assets.# Advice 3 : How to calculate turnover

The rate of turnover is one of the most important places among the economic indicators for assessing the success and effectiveness of any enterprise. They are calculated as an internal services organization to control and external evaluators, for example, banks, while analyzing the creditworthiness of the company.

Instruction

1

To calculate

• The balance of the organization, from which you will take the value of specific assets;

• Statement of profit and loss (OPI), which shows the revenue and cost of sales.

**turnover**, you will need the data of the two main documents reflecting the financial activity of the company:• The balance of the organization, from which you will take the value of specific assets;

• Statement of profit and loss (OPI), which shows the revenue and cost of sales.

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When talking about the need to calculate

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**the turnover**, imply the importance of evaluating how efficiently a company uses its existing assets, commodities and other assets. Used every asset contributes to the ultimate revenue and to estimate this contribution using the turnover ratio. The most often counting five types of coefficients:•

**turnover**assets of the enterprise;•

**turnover**of inventory;•

**the turnover of**payables and receivables;•

**turnover**of fixed assets of the company.3

To calculate

**turnover**of a company's assets, divide the proceeds from OPI in the amount of the asset balance. You will see how much money in the final revenue brought by each unit of assets.4

To calculate the

**turnover**of inventory, divide the cost of goods sold from OPI on the value of inventories, taken from the balance.5

To calculate the

**turnover**of receivables, will split the proceeds from OPIE on the value of the receivables, taken from the company's balance sheet.6

To calculate the

**turnover**of accounts payable, divide the cost of goods sold (OPI) on the amount payable (balance).7

To calculate the

**turnover**of fixed assets of the company, will split the proceeds from OPIE on the value of fixed assets indicated in the balance sheet of the organization.# Advice 4 : How to calculate the stock

The calculation of the commodity

**reserves**gives the company the opportunity to analyze how much of the goods stored in the warehouse during the reporting period, how much the company was able to implement, and in what quantity the goods of some names will require a new purchase.You will need

- balance or other form of inventory, contracts with suppliers and customers, calculator, Notepad, pen

Instruction

1

Calculate initial inventory. This figure can be found in the balance sheet for the previous period or in any other form of accounting of commodity

**stocks**. The figure at the end of the previous year, as a rule, is transferred at the beginning of the current period. For example, a sewing company "X" is stored in the warehouse the material at a total cost of 1 678 000.2

Determine the value of the procurement. This value is taken from the contracts with suppliers or other documentation confirming the fact of purchase. Even in the beginning of the year sewing company "X" purchased the material for the sum of 590 000 roubles.

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Calculate the value of sales. This parameter should reflect the amount of sales that could realize the organization at the beginning of the period. Let the garment company "X" fabric store "Y" bought material to 630 000.

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Count inventory by the formula:

TZ = NTZ + S – P where

TK – inventory, NTZ – initial inventory S – purchases N sales.

In the above example, TK = 1 678 000 + 590 000 – 630 000 = 1 638 000 rubles.

TZ = NTZ + S – P where

TK – inventory, NTZ – initial inventory S – purchases N sales.

In the above example, TK = 1 678 000 + 590 000 – 630 000 = 1 638 000 rubles.

5

Calculate the stock on every product. For a more qualitative analysis of the movement of goods in the warehouse is necessary to calculate the index of specification for each type of product and its variety. In particular, in our example, TK can be calculated separately for silk, one for woolen cloth, separately for synthetics. While the stock of silk, you can also differentiate by color, density or width of the meter. Therefore, it is recommended to create a special computer program which will track the movement of commodity

**inventory**for each particular product. This will enable the company to respond quickly to the situation – conduct advertising campaigns that promote the sale of goods or urgently to buy raw materials or finished products from the supplier.Note

The calculation of inventory is recommended every quarter and at the end of the year, which should be reflected in the relevant reporting forms.