Resources / Inventory & Stock
Inventory & Stock
Seven connected explanations, starting from what inventory actually is and ending at why a profitable business can still run short of cash.
Definition
What Is Inventory?
The stock your business owns and hasn't sold yet, valued at cost.
Diagnostic
Why Is My Stock Always Wrong?
A guided walk-through of the real causes, before you assume you know the answer.
Problem
What Is Stock Loss?
Theft, damage, and error — and how shrinkage fits in.
Problem
What Is Dead Stock?
Stock that's still there, but tying up cash instead of selling.
Definition + Formula
What Is Stock Turnover?
How many times your stock sells and gets replaced over a period.
Decision
How Much Stock Should I Keep?
Why there's no universal number, and the shape of the decision.
Diagnostic
Working Capital and Inventory
Why you can have stock and profit, and still have no cash.