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How do I calculate stock turns?
Stock turns, also known as inventory turnover, is a measure of how quickly a company is able to sell its inventory over a given period of time. To calculate stock turns, you can use the following formula:
Stock turns = Cost of goods sold / Average inventory
To calculate this, you will need to know the company's cost of goods sold (COGS) and the average inventory for the period being measured. The cost of goods sold is the total cost of the inventory that was sold during the period. Average inventory is calculated by taking the average of the beginning and ending inventory levels for the period.
Here is an example of how to calculate stock turns:
Let's say a company has a cost of goods sold of $500,000 for the year and an average inventory of $100,000. To calculate the stock turns, you would divide the cost of goods sold by the average inventory:
Stock turns = $500,000 / $100,000 = 5
Where do I find stock turns benchmarks for sports footwear?
There are a few different places where you may be able to find benchmarks for stock turns in the sports footwear industry. Here are a few options:
1. Industry trade publications: Many industry trade publications, such as Footwear News or SGB Magazine, publish regular reports on key performance indicators in the sports footwear industry, including stock turns. These publications may also provide comparisons to industry benchmarks or to the performance of similar companies.
2. Industry associations: Industry associations, such as the Sports & Fitness Industry Association (SFIA) or the Footwear Distributors and Retailers of America (FDRA), often publish industry data and statistics that may include benchmarks for stock turns in the sports footwear industry.
3. Company financial statements: You can also try looking at the financial statements of publicly traded sports footwear companies to see how their stock turns compare to industry benchmarks. These statements are typically available on the company's website or through a financial data provider such as Bloomberg or Yahoo Finance.
4. Consultants or analysts: Consulting firms or industry analysts who specialize in the sports footwear industry may also be able to provide insights into typical stock turn values for the industry.