Find which financial year has better Inventory Days. The company’s Cost of Goods was sold at INR 444.19 Cr and INR 330.03 Cr, respectively, for FY18 and FY17. Nocil Limited has Closing Inventories for FY18 and FY17 of INR 155.27 Cr and INR 114.58 Cr, respectively. The company has reduced the closing stock of its inventory, and there might be a downgrade of the order book for the current financial year, which is why the company is holding lower inventory. Thus, we get an assumption of the business conditions that the churning of inventory to cash has reduced from 279.26 Days to 250.96 days. Days in Inventory for FY18 = 250.96 days.Days in Inventory for FY17 = 279.26 days.The company’s Cost of Goods sold stands at INR 41,205.43 Cr and INR 32,418.09 Cr, respectively, for FY18 and FY17. Tata Steel Limited has Closing Inventories for FY18 and FY17 of INR 28,331.04 Cr and INR 24,803.82 Cr, respectively. This will help to analyze the product of the company as well as the condition of the business. Businesses can conduct peer analysis to compare their inventory days with competitors in the same industry. This means the existing Inventory of X Ltd will last for the next 73 days, depending on the same sales rate for the following days. Days in Inventory =(Closing Stock /Cost of Goods Sold) × 365.Find Days Sales in inventory.ĭays Sales in inventory are Calculated as follows: has a closing Inventory in its Balance Sheet at INR 20000, and its Cost of Goods Sold stands at INR 100000. You can download this Days in Inventory Formula Excel Template here – Days in Inventory Formula Excel Template Days in Inventory Formula – Example #1
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |