project report on ratio analysis

Page 46

{1.9} Inventory Turnover Ratio Cost of Goods Sold

Inventory Turnover Ratio =

Ave. Inventory

Cost of Goods Sold = Total Sales – Gross Profit For year 04 -05 = 92,421.96 – 20,551.76 = 71,870.20 05 - 06 = 125,729.74 – 29,730.20 = 95,999.54 06 - 07 = 134,397.10 – 24,916.88 = 1,09,480.22 07 - 08 = 138,488.33 – 29,492.74 = 1,08,995.59 Ave. Inventories = (Opening stock of inventory + Closing stock of Inventory)/ 2 For year 04 - 05 = 2,691.57 + 5,519.91 / 2 = 4,105.74 05 - 06 = 5,519.91 + 6,376.20/ 2 =

5,948.05

06 - 07 = 6,376.20 + 14,696.98/ 2 =

10,536.59

07 - 08 = 14,696.98 + 11,020.20/ 2 = 12,858.59

Inventory Turnover Ratio For year

04 – 05 =

05 – 06 =

06 – 07 =

07 – 08 =

71,870.20 4,105.74

95,999.54 5,948.05

1,09,480.22 10,536.59

1,08,995.59 12,858.59

= 17.50 : 1

= 16.14 : 1

= 10.39 : 1

= 8.48 : 1

46


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.