Inventory Turnover Ratio and Days of Stock
Inventory turnover = COGS ÷ average inventory. With ₹12,00,000 COGS and ₹2,50,000 average stock, you turn 4.8 times a year, about 76 days of stock.
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Inventory turnover = COGS ÷ average inventory. With ₹12,00,000 COGS and ₹2,50,000 average stock, you turn 4.8 times a year, about 76 days of stock.
Operating profit margin is operating profit ÷ revenue × 100. ₹1,60,000 on ₹8,00,000 sales is 20%. See how it differs from gross and net margin.
Pre-tax price = inclusive price ÷ (1 + tax rate). ₹1,120 with 12% tax inside is ₹1,000 before tax, and the tax is ₹120, not ₹134.40.
Growth = (new − old) ÷ old. Revenue of ₹40 lakh rising to ₹52 lakh is 30%. A steady 5% a month compounds to 79.6% a year, not 60%.
Sales commission = eligible sales × commission rate. At 6% on ₹2,50,000 the payout is ₹15,000, but a tiered plan on the same sales pays ₹16,000.
Conversion rate = closed deals ÷ leads. Closing 38 of 400 leads is 9.5%, but the same 38 is 23.75% of qualified leads. Pick the base before you compare.
Explore our free calculators and apply these concepts to your own numbers.