C store inventory management
- Days of stock on hand
- 12.5
- Average stock held, at cost
- $50,000
- Stock turns in the year
- 29.2
- Gross profit for the year
- $540,000
Every figure on this page is computed from the inputs entered, by the method stated below it. Rollupvo publishes no tax rule, no accounting standard, no margin and no par: the lead times, the safety weeks, the margins and the ownership shares are yours, and the defaults are a worked example to replace with your own figures.
The figures above start from a worked example (12.5). Change any input and the answer updates as you type.
Download the C store inventory management worked example (CSV)
This is a c store inventory turnover sheet, the four figures c store inventory management comes down to once the counts are in. The average of opening and closing stock at cost is what the store held; cost of goods sold over it is the turns; 365 over the turns is days of stock on hand; sales less cost of goods is gross profit and over sales is the margin; and gross profit over average stock is gross margin return on inventory, the dollars of margin each dollar tied up on the shelf earned. Every figure is yours; the sheet publishes no benchmark. Free, on the page, no account; the paid plan keeps the year's figures against the store.
Turns and days on hand, the two ways to say the same thing
$1,460,000 of cost of goods over $50,000 of average stock is 29.2 turns, and 365 over 29.2 is 12.5 days of stock on hand. One store carrying twenty days beside another carrying twelve has eight days of cash on the shelf the other does not; the sheet works both figures so the stores compare.
Gross profit and the margin the mix ran
$2,000,000 of sales less $1,460,000 of cost of goods is $540,000 of gross profit, 27% of sales. The margin is worked from the two figures rather than entered, so the sheet reads what the mix actually ran across the year rather than what the price file says it should.
Gross margin return on inventory
$540,000 of gross profit over $50,000 of average stock is 10.8: each dollar held on the shelf earned $10.80 of margin in the year. It is the figure that lets a low-margin fast-turning category stand beside a high-margin slow one; the sheet returns it and publishes no target.
C store inventory management: common questions
How do I calculate inventory turnover for a convenience store?
Cost of goods sold for the year divided by average stock at cost, where average stock is the opening and closing figures added and halved. The free sheet on this site works it from four figures and adds days on hand, gross margin and gross margin return on inventory with no account.
What is a good turnover figure?
The sheet does not say, on purpose: it depends on the category mix, the supplier and how much shelf a store gives to slow lines, and a figure that is right for one store is wrong for the one next door. The worked example runs 29.2 turns to show the arithmetic. Compare your stores against each other, year on year.
Where do the opening and closing stock figures come from?
Your counts at cost at the start and end of the year, or the book stock the convenience store count sheet on this site works when a count is not to hand. Rollupvo Pro keeps every count against the store so the two figures are a lookup rather than a search.