Formula for calculating the coefficient of inventory turnover most standard 2024

Posted on by Trần Tiến

The coefficient of inventory turnover là một chỉ số quan trọng phản ánh mức độ hiệu quả của việc quản lý kho bãi. Việc hiểu rõ chỉ số luân chuyển hàng tồn kho sẽ giúp doanh nghiệp kiểm soát hàng hóa hiệu quả hơn. Trong bài viết này, AccNet sẽ cùng bạn tìm hiểu chi tiết về vai trò, công thức tính toán hệ số này trong hoạt động kinh doanh.

1. The coefficient of rotation what is inventory?

The coefficient of inventory turnover (Inventory Turnover Ratio) is an indicator of important financial help businesses measure the ability rotated inventory into revenue in an accounting period certain. This coefficient reflects the frequency of goods to be sold/used in production

According to the accounting standards in Vietnam VAS 02 - "inventory" system of inventory turnover is an important indicator that helps businesses evaluate the effectiveness of the management of goods in warehouse, optimize costs, enhance operational efficiency.

Index rotated inventory is calculated based on the relationship between cost of goods sold (COGS) and inventory average. This is an important indicator for the business of inventory, particularly in areas such as manufacturing, trade, retail.

2. Formula for calculating the coefficient of inventory turnover

2.1. The calculation formula of the number of revolutions inventory

The coefficient of inventory turnover = cost of goods sold (COGS)/inventory average

In which:

  • Cost of goods sold (COGS): Is the total of direct costs related to the production of goods/services that the business has sold during an accounting period certain. The price of capital includes costs such as raw materials, direct labor, the cost of production.
  • Inventory average: calculated by taking the average of the inventory at beginning of year and end of the period. 
Inventory average = (inventory, beginning of the period + inventory end of period)/2
hệ số vòng quay hàng tồn kho

2.2. For example, detailed calculations

Suppose company X operates in the field of retail have the number of documents in the following in the financial year:

  • Cost of goods sold: 2 billion VND.
  • Inventory, beginning of the period: 400 million VND.
  • Inventory end of period: 600 million VND.

Inventory average = [(400 + million 600 million)]/2 = 500 million (VND)

The coefficient of inventory turnover = (2 billion)/(500 million VND) = 4 times 

This means that company X has been around his inventory 4 times in years, corresponding with the entire inventory has been rotated 4 times.

2.3. Results the coefficient of inventory turnover in the different branches

Here are some indicators rotation average inventory in the industry:

  • Retail industry: index rotation inventory generally higher, ranging from 5 to 10 times of the year.
  • Manufacturing: For the heavy industry/manufacturing goods, the coefficient is usually lower, ranging from 2 to 5 times of the year.
  • Service industry: Due to no inventory material, this coefficient is not applied directly, but can be replaced by other indicators such as rotation of working capital.

3. Role of inventory turnover for the business

Here are the main roles of inventory turnover for the business:

  • Reviews effective inventory management: high coefficient of reflection goods rotated fast, reduce storage costs, items in the backlog.
  • Optimization of cash flows: goods sold fast help increase cash flow, reduce financial risk.
  • Minimize the risk warehousing: high coefficient helps to avoid damage, obsolescence, reduce costs of storage.
  • Support plan: regulate The production, import goods fit with the market demand.
  • Improve competition: respond quickly to market changes, to meet the requirements of customers.
  • Forecast demand more accurately: Help prepare the goods in time for the peak season.
  • Compare with competitors in the same industry: Help to adjust the strategy to enhance performance.

4. The factors that affect the coefficient of inventory turnover

  • Industry business: industries such as retail (fmcg) often have the revs high, while manufacturing (durable goods) have lower coefficient due to the long sales cycle.
  • Strategic warehouse management: Apply the method of Just-in-Time (JIT) or use software to manage warehouse modern help increase the multiplier by reducing the inventory is not necessary.
  • Strategic purchasing and demand forecasting: Forecast accuracy, purchase according to the needs help maintain inventories reasonable, increasing the coefficient of rotation.
  • Seasonality: The industry is seasonal, usually have the volatility coefficient due to hoarding goods before the peak, slow consumption during low points.
  • Scale business/products: small Business capable of rotation orders faster, while big business with warehousing complex usually have low revs more.
  • Economic cycle: When the economy grows, demand increases, the coefficient of rotation increases. In contrast, recession can reduce the coefficient of due to reduced consumer demand.
  • Supply chain management: supply Chain efficiency helps reduce the amount of inventory needed to keep increasing the speed of rotation of goods, improve the system of rotation.
yếu tố ảnh hưởng đến hệ số vòng quay

5. Tối ưu hóa hệ số vòng quay hàng tồn kho với phần mềm AccNet Inventory

Hệ số vòng quay hàng tồn kho phản ánh hiệu quả luân chuyển hàng hóa, trực tiếp ảnh hưởng đến chi phí lưu kho, dòng tiền của doanh nghiệp. Với phần mềm AccNet Inventory, doanh nghiệp sẽ có trong tay công cụ tối ưu hóa hệ số này. 

Phần mềm xuất nhập kho này cung cấp tính năng theo dõi hàng tồn kho theo thời gian thực, tự động cảnh báo khi hàng hóa tồn đọng quá lâu hoặc thiếu hụt, hỗ trợ dự báo nhu cầu chính xác. 

Nhờ đó, hàng hóa luôn được luân chuyển hiệu quả, giảm thiểu chi phí lưu kho, tăng cường dòng tiền, nâng cao khả năng đáp ứng thị trường. AccNet Inventory giúp doanh nghiệp nắm bắt, tối ưu chỉ số luân chuyển hàng tồn kho dễ dàng, hiệu quả, chính xác.

ACCNET INVENTORY – QUẢN LÝ KHO CHẶT CHẼ, GIẢM LỖ TỪ TỒN KHO VÀ THẤT THOÁT

  • Giảm 20–30% hàng tồn kho dư thừa nhờ kiểm soát số lượng thực tế theo thời gian thực
  • Tăng 50% tốc độ xuất – nhập – kiểm kê, giảm sai sót thủ công
  • Cảnh báo tồn kho thấp hoặc vượt định mức – ngăn mua thừa, tránh thiếu hàng khi cần
  • Hạn chế thất thoát do nhầm lẫn, gian lận – giảm 80% lỗi phát sinh trong quá trình vận hành kho

Doanh nghiệp sử dụng AccNet Inventory báo cáo tiết kiệm trung bình 300–600 triệu/năm nhờ giảm tồn kho đóng băng, tránh mất mát hàng hóa

👉 Vốn chôn, hàng lạc, báo cáo sai – ba thứ đang kéo doanh nghiệp xuống >>> AccNet Inventory dứt điểm cả ba

AccNet Inventory

Thank you for taking the time to learn about the coefficient of inventory turnoverthe importance of it for business operations. I hope the knowledge will help you understand more about how to manage warehousing effective, apply the appropriate solution to optimize the system of rotation, enhance business performance. 

CONTACT INFORMATION:
  • ACCOUNTING SOLUTIONS COMPREHENSIVE ACCNET
  • 🏢 Head office: 23 Nguyen Thi huynh, Ward 8, Phu Nhuan District, ho chi minh CITY.CITY
  • ☎️ Hotline: 0901 555 063
  • 📧 Email: accnet@lacviet.com.vn
  • 🌐 Website: https://accnet.vn/
Tran Tien
Have censored content

Experts have more than 18 years of experience in the field of accounting and finance, have led to the large-scale enterprises in various industries (technology, manufacturing, retail) achieve sustainable growth. Read more about expert>>

Theme:

Created with Fabric.js 3.6.6