Stock financial analysis
The Analiz → Stok Finansal Analizi page shows what your stock is worth and what it costs.
Indicators
Section titled “Indicators”| Indicator | Calculation |
|---|---|
| Stock value (tied-up cash) | Stock on hand × unit cost |
| Annual holding cost | Stock value × annual holding rate |
| Inventory turnover | Annual cost of goods sold ÷ stock value |
| Return on inventory (GMROI) | Annual gross margin ÷ stock value |
| Net contribution | Annual gross margin − holding cost |
| Excess stock | The quantity above the target level |
Annual demand is the latest forecast scaled to a year: total forecast over the horizon × 365 ÷ (horizon periods × average days per period). For a 6-month horizon the factor is about 2. Stock value uses the current balance and today’s exchange rate.
- Excess stock: per warehouse, the part of stock on hand above the target level (reorder point + cycle quantity); company-wide, the sum of the warehouses’ excess. Stock in a warehouse with no demand is entirely excess.
- Dead stock: a product with stock but zero annual demand.
- Ideal stock: safety stock + half the cycle quantity.
Holding rate
Section titled “Holding rate”The sum of four components entered on the Settings page: cost of capital, storage, insurance, and obsolescence and shrinkage.
Stock reduction scenario
Section titled “Stock reduction scenario”A slider shows the annual saving and the cash released “if stock were reduced by this percentage”. The line for running down excess stock only shows the saving available without lowering the service level.
The products tying up the most cash, the products with the most excess stock, and the products whose gross margin does not cover their holding cost are listed on separate cards.
Foreign-currency products
Section titled “Foreign-currency products”The stock value of products bought in a foreign currency is converted to the base currency at the current rate. The Purchase currency and FX difference in stock columns of the product table show this. For details see FX risk.