beholdningsturnoveren

Beholdningsturnoveren, often translated as inventory turnover or stock turnover, is a financial ratio that measures how many times a company has sold and replaced its inventory during a given period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value. A higher inventory turnover ratio generally indicates that a company is selling its products efficiently, while a lower ratio might suggest weak sales, excess inventory, or obsolete stock.

The formula for inventory turnover is COGS / Average Inventory. Average inventory is typically calculated by summing the inventory at the beginning of the period and the inventory at the end of the period, and then dividing by two. This ratio is crucial for businesses to understand their operational efficiency and cash flow. A very high turnover might mean that the company is not holding enough inventory, potentially leading to stockouts and lost sales. Conversely, a very low turnover suggests that capital is tied up in inventory, which can be costly due to storage, insurance, and the risk of obsolescence.

Industry benchmarks are important when evaluating inventory turnover. What constitutes a healthy turnover rate can vary significantly between different sectors. For example, grocery stores typically have very high inventory turnover rates due to the perishable nature of their goods, while businesses selling heavy machinery might have much lower turnover rates. Analyzing this ratio over time can reveal trends in a company's sales performance and inventory management strategies.