Let us assume that you pass by someone you know, and they don’t say at least “hello!”. Well, this is basically a bounce rate. But in marketing and Internet slang, bounce rate means that somebody is visiting your website, opens it – and then just leaves without even navigating it. Quite frustrating, isn’t? These bounce… Read more
If your business deals with a supply chain, then you should be very well informed about the supply chain metrics come in so handy for you and your team. As an integral part of maintaining an efficient business, supply chain metrics are used to monitor your company and consequently, optimize it. One of the most… Read more
Now we’ll look into the efficiency ratio that is the inventory turnover ratio. This ratio is used to determine whether the inventory of a business is managed in an efficient manner or not. When calculating the inventory turnover ratio, we compare the cost of goods sold with the average inventory, for a certain period of… Read more
Introduction Do you know how long it takes for your business to sell its entire inventory? Imagine having the insight to gauge the average time your products take to fly off the shelves. Understanding this metric can unlock a world of possibilities for your inventory management strategy. Welcome to the world of Inventory Days of… Read more
Did you know that you can turn inventory into cash that is above the price of the inventory? If not, you should know it’s possible. But how can you calculate the company’s ability to do that? This is possible to the gross margin return on investment ratio. If you’re here, it’s probably because you want… Read more
Fill rate denotes the fraction of customer demand that meets their expectation through instant stock availability without any issue in backorders or missed sales. Mostly, fill rate established the exact fraction of demand that can be recovered or serviced in a better way if the overall inventory performance has to be improved. Managing these kinds… Read more
Days Sales Outstanding (DSO) is important in the tech industry as companies often operate on a subscription or recurring revenue model, where customers make regular payments over an extended period. This creates a need for efficient cash flow management and timely collection of receivables. The tech industry is known for its fast-paced environment, with rapid… Read more
As the head of an organization, you must already know how important your customers are for the growth of the organization. Customers are not only the core element of success, but also they are the top priority of your business goals. So fulfilling their demands and needs will definitely delight customers and strengthen your relationship… Read more
How many days will it take for your company to sell its entire inventory? Well, if you have no idea, then you can calculate the Days Sales in Inventory, also known as Days Inventory Outstanding or just Days in Inventory. This financial ratio is used to determine how long a company’s stock of items will… Read more
This financial ratio compares the cost of sales, accounts payable, and the number of bills that remain unpaid in order to calculate the average time in which a company pays its invoices and bills to vendors or other companies. The days payable outstanding (DPO) ratio is usually measured on an annual or quarterly basis in… Read more
The current ratio refers to a company’s ability to use its current assets in order to pay off its short-term liabilities. This ratio is labeled as an efficiency and liquidity ratio and it is also an important measure of the latter mentioned liquidity as the short-term liabilities are due mostly within the next
Also abbreviated as COGS, the cost of goods sold measures the direct costs that were sustained during the production of products that were sold during a certain period. In short, this managerial calculation determines how much the company spent on materials, labor, and overhead to purchase or manufacture those products that were sold during the… Read more