Is your inventory value based on sales price or cost of goods (excluding admin & other miscellaneous costs)
@RaviDawar
7 жыл бұрын
Ian, really useful video as others. However, why did you divide the total cost by 12? You began with the month inventory cost of $1M and then calculated each line item monthly e.g. damage of $20K per month? Why did you then divide the total by 12 again? May be I am missing something here?
@hyfy-tr2jy
4 жыл бұрын
Not sure if this is meaningful to you after 3 years but hey...the $1 million dollar inventory figure is the "average inventory value" of the facility or in other words $1 million dollars is the average inventory level they have on any given day during the year so they are financing $1 million dollars of inventory on average which is an annualized number. All the other costs are also annualized hence the "divide by 12"
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