Retail Math Flashcards
(15 cards)
Average Inventory (Avg Inv): (BOM + EOM) / 2 OR (BOM+ 6 EOM) / 7
The estimate inventory for desired product(s) during two or more specified time frames.
If calculating for a season, divide by 7.
If calculating for a year, divide by 13.
Annual Average Inventory (FY Avg Inv):
(BOP + SUM of EOP) / 13
The estimate inventory for desired product(s) for the fiscal year.
Retail $ (Retail):
Cost $ + Markup
Dollar amount the product is sold for in a store.
Cost $ (Cost):
Retail $ - Markup
Dollar amount the product is bought for by the retailer.
Markup $ (MU$):
Retail $ - Markup
Dollar amount added to the cost of a product to cover the costs of doing business and create a profit.
Markup % (MU%):
(Retail $ - Cost $) / Retail $
Percentage of the profit your cost is.
Cost of Goods Sold (COGS):
(BOP Inventory Cost + Receipts Cost + Inventory
Adjustments) - EOP Cost
This is the price paid for a product, plus any additional costs necessary to get the merchandise into inventory and ready for sale, including shipping and handling. Indirect costs are excluded such as overhead, marketing, & distribution costs.
Gross Margin $ (GM$):
Retail Sales - Cost of Good Sold OR Retail $ -
Cost $
Amount of profit earned when an item is sold
Gross Margin % (GM%):
(Total Sales - Cost of Goods Sold) / Total Sales
OR Gross Margin $ / Total Sales
The % of each dollar a retailer earns as gross profit.
Gross Margin Return on Investment (GMROI):
Gross Margin $ /Average Inventory @ Cost
Evaluates whether a sufficient gross margin is being earned by the products purchased, compared to the investment in inventory required to generate those gross margin dollars.
A higher GMROI is generally better, as it means each
unit of inventory is generating a higher profit.
Sell Through % (ST%):
Sales / (Sales + Current OH)
Comparing of the amount of inventory a retailer has on hand to what is actually sold.
In Stock % (In Stock %):
(Total Stores - Total Stores Out of Stock) / Total
Stores
The rate of stores in stock at the end of the week (Sunday night). 100% = all stores are in stock.
Inventory Turn (Inv Turn): Unit Sales/Average Unit Inventory at Cost
How many times during a certain calendar period a retailer sells its inventory and replaces it.
Most of the time, high turn is good and it means you’re selling a lot without stocking too much.
Cost Turn:
Cost Sale/Average Inventory at Cost
How many times during a certain calendar period a retailer sells its inventory and replaces it.
Most of the time, high turn is good and it means you’re selling a lot without stocking too much.
Retail Turn:
Retail Sales/Average Inventory at Retail
How many times during a certain calendar period a retailer sells its inventory and replaces it.
Most of the time, high turn is good and it means you’re selling a lot without stocking too much.
