Clayton & Mckervey

You’re in the wholesale or distribution space and have a huge asset, called inventory, which needs to be converted to cash, but you aren’t great at tracking or counting it and you are not really sure which items are sitting.  So what do you do?   Outlined below are some simple ratios that can give you additional insight into what is happening with your inventory and allow you to start moving in the right direction. Turnover One of the most common ratios that we look at in servicing wholesale and distribution companies is inventory efficiency, or more specifically turnover and days …