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Average Inventory

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Average Inventory
The value of a company's inventory over a period of time. One calculates the average inventory by adding the value of inventory at the beginning of an accounting period to the value at the end and dividing by two.


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In addition to the new part-pricing feature, SiliconExpert has integrated average inventory lead-times from distributors into its component management suite (http://www.
For a glimpse of how important this ratio can be, consider this comparison: One store has an average inventory of $50,000 and sales of $200,000 per year; another store has an average inventory of $100,000 and the same sales figure.
ANNUAL GROSS MARGIN DOLLARS FROM STOCK SALES AVERAGE INVENTORY VALUE Some will argue that the GMROII formula does not give you an exact indication of the dollars you should expect to receive from the investment.
 
 
 
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