What should the store manager do?

How to do a good job of "brand" store "people, money, things, information" management

Store of the many elements of management, the management of people is the first key.

□ The training of shoppers and the public relations work with the relevant units and personnel of the store.

1) Cultivation of psychological and obligatory qualities of shoppers.

A. Cultivation of the psychological quality of shopping guides:

a. The meaning of the purpose of the shopper's work is consistent with the prosperity of the store. Therefore, to make the shopper guide can be anxious to the operator's urgency, always keep in line with the operator.

b, shopping guide work responsibility should be sincere for the interests of the customer service. Store's business purposes and shopper's work to realize the benefits of the purpose is closely related to the customer. Therefore, we must always adhere to the implementation of the store's "customer first, service first" business purposes.

c, to promote shoppers loyal and wholeheartedly for the customer service, to establish their peace of mind in the sales post confidence.

B business quality training:

Cultivate shoppers to properly deal with the store manager, colleagues and customers between the interpersonal relationship, recommending the goods of the business explanation ability.

a, often take the initiative to exchange and communicate with shopping guides, cultivate them to be able to obey the arrangements, the overall situation of the mentality.

b, cultivate shoppers in the colleagues can care for each other, love each other, with the spirit of unity and cooperation.

c, training shoppers to treat customers correctly, and constantly improve the shopping guide ability and service skills.

d, the content of the salesperson training, according to the salesperson training courses and other relevant information.

e, life care:

Work often encountered shoppers on duty distracted, listless, depressed or angry. This phenomenon is due to family disputes, husband and wife (lovers) quarrels or because of the night and colleagues excessive merriment, insomnia, economic difficulties and many other reasons. As a store manager should be given timely attention to understand the situation, targeted to help them promptly lift the idea of lumps and worries, so that they are on duty, to maintain an optimistic, upward, positive and happy state of mind.

2) The operator (store manager) to deal with the relationship between the company's marketing department. Store is the distribution channel of clothing goods, the marketing department and customers seem to be the source of the store and the source of the tail, one can not do without the other.

A, do not put forward excessive requirements to the company's marketing department. Such as: beyond the franchise agreement on the amount of returns on credit amount of goods, asking for gifts, promotional costs.

B, timely settlement of payments. Credit will affect the reputation and image of the store, the store manager should raise funds in a timely manner to keep doing cash in.

C, take the initiative to cooperate with the Ministry of Marketing, sharing a variety of costs aimed at facilitating business efficiency and promotional costs. Such as computer network set up computer device costs, promotional gifts, advertising, discounts and other costs of sharing.

3) The operator (store manager) should coordinate the relationship with customers:

A. The store manager should stand on the side of the customer when the shopper has a dispute with the customer. Store manager should try to think of customers everywhere, try to make customers spend money, buy the goods to their liking. Customers should be given a refund or exchange for any defects in their purchased clothing. This tangible loss will be much smaller than the intangible loss of refusing to return the goods.

B, do not the counter with the customer theory. Guide and customer quarrels, can not help, not to mention indifference, customers should be taken to a secluded place, patience, persuasion and explanation, so that the customer to eliminate the gas, to avoid adverse effects on the store.

C. Elimination of the hidden dangers of quarrels:

a. Hold the importation of goods, do not let the quality of goods on the shelves. The quality of goods on the implementation of free return and exchange.

b. Eliminate the long waiting time, too slow or cold service caused by quarrels.

c, the store manager should do everything possible to construct a speedy service environment, and completely eliminate hidden problems.

□ Organize the management of merchandise circulation in the store:

1) Correctly organize the purchase of goods.

A. The varieties, styles, colors, and specifications of the "brand" apparel franchised by the store must be purchased. Mainstream clothing to be complete, secondary clothing should also be complete, and even outside the specifications of the clothing (such as super-small size of the clothing goods) should also be appropriate to purchase, so as to meet the different needs of customers. This will create more business opportunities.

B, in the number of goods to master the economic batch of goods, that is to say, to master the "sales into, hard into the fast sales, into the promotion, storage and sales" of the basic principles of goods.

2) highlight the "brand men's" franchise brand image, planning promotional work. Store manager in the monopoly sales management, in addition to cultivating shoppers from the customer into the store can do a good job from beginning to end of the sales service, but also pay attention to highlight the "brand" brand image of clothing, without losing time, timely planning for clothing merchandise promotions to expand the benefits of monopoly sales.

A, highlighting the "brand" brand image.

B, according to the unified design of the windows, shelves display goods.

C, planning and organizing effective promotional work:

a, POP advertising in stores, that is, point-of-sale advertising, to stimulate the customer's determination to buy, which is usually carried out by the branded apparel company for the unified planning arrangements.

b, the application of membership points method: the general application for membership, take the points system and then give discounts, so that the old customers are satisfied with the customers to reach a tacit understanding, but also ushered in a new customer base.

c, the new listing of gift promotions: the use of goods for the season, it is logical that the discount sales, and sometimes also meet the usual economic constraints of the customer wildly purchase brand-name vanity psychology.

d, every holiday discounts for promotions. The use of New Year's Day, Spring Festival, May Day, Mid-Autumn Festival, Senior Citizens' Day, National Day, Christmas, Teachers' Day, Valentine's Day and other major festivals or traditional festivals, such as the peak period of consumption of gifts and price reductions in promotions, reflecting the company's return on the consumer's appreciation, which is y attractive to customers.

In short, all to create consumer demand or desire to buy for the purpose of the store engaged in a variety of effective activities, are the scope of the promotion. The brand apparel company will rationalize the annual promotion plan, then the above promotional activities will also be carried out under the company's advice or guidance, so as to ensure the consistency of the brand's actions.

□ Strengthen the management of store goods and materials:

1) Store sales display and inventory of apparel merchandise, the establishment of a categorized ledger for accounting and management, so that the account is consistent.

2) library goods should still be stacked by category. Pay attention to do goods have fire, moisture, moth, dust, wrinkle and other precautions.

3) At least twice a year in the spring and summer and fall and winter end of the inventory inventory work.

□ Fine-tuning, pay close attention to the accounting of efficiency indicators, reduce operating costs

"Brand men's clothing" store owners specializing in the ultimate goal of business is to obtain a lucrative return. The store's profit and loss reasons to be analyzed, and take timely measures to ensure that the realization of the business purpose, absolutely no blind business. Therefore, in the store accounting for many indicators (such as merchandise purchase indicators, sales indicators, capital indicators, circulation costs indicators, etc.), it is recommended that the first should focus on the total operating profit or profit margin accounting.

Specialty stores should establish and account for operating expenses itemized ledger, operating expense items include the following:

a, transportation and miscellaneous expenses; b, wages; c, welfare costs; d, packaging costs; e, merchandise depletion costs; f, store rental costs; g, depreciation of fixed assets; h, repairs; I, amortization of the value of low-value consumable items; j, interest; k, other expenses.

□□ Emphasize the use and management of information.

A. Computerized information management is used. Purchase, storage, sales and analysis of the process are carried out by computer, that is, simple and convenient and avoid risk.

B, each store are set up: "customer suggestion box", collect customers' opinions on goods and services

.

The above service rules, each store staff must be borne in mind, and familiar with its operating procedures, so that the store is more perfect, and become a first-class store.

Two sales management

□ Effective increase in turnover

A retail store's daily turnover of how much for the industry, is an extremely sensitive, but also the most concerned about the issue; through the following formula decomposition of the real meaning of turnover and how to use all kinds of marketing factors to improve the performance of the store to have a certain understanding, and on this basis to take effective measures. The following is a breakdown of the formula.

Turnover = customer traffic (site selection) x customer entry rate (store atmosphere) x customer transaction rate (salesmanship, service attitude, hospitality skills) x average number of goods purchased (additional marketing) x average unit price of goods purchased (to provide higher value-added products).

Summary of the above formula decomposition, we can learn that the turnover is by the flow of customers, customers into the ratio, customer transaction ratio, the average number of goods purchased, the average unit price of goods purchased and other five factors of the multiplier effect, if you want to improve the store's turnover, of course, it is necessary to analyze the five factors, and stable and sustainable marketing performance, cannot be separated from the effective management and control.

Customer traffic

Because the amount of customer traffic can affect the performance of the store, so the first consideration is to set up stores in areas with frequent traffic, followed by the effective use of business promotion activities, which is the reason for the increase in the number of passes, but the fundamental task: should be in the expansion of the company's stores and the cultivation of the basic regular customers to make efforts.

Customer traffic ratio

Even if a store is located in a place where there is a lot of customer traffic, it will be difficult to drive the store's performance if it lacks the charm that attracts customers to the store. For this reason, it is important to create effective store features, such as attractive window displays, beautifully decorated storefronts, attractive promotional displays, and diversified store service mechanisms, to increase the rate of entry by not only attracting passers-by, but also attracting those who come to the store on a special trip.

Customer transaction ratio

When customers enter the store, how to arouse their motivation to shop and take action depends on the store's overall merchandising and sales power. Such as floor decoration atmosphere, product composition characteristics, display display effect and sales staff's service attitude and hospitality skills, etc., will affect the customer shopping transaction ratio.

The average number of products purchased

depends on the store's full collection of products to meet the needs of customers; and then depends on the relevance of the product composition and the sales staff's knowledge of the product in order to provide customers with a series of interrelated products. At the same time, through the sales staff's in-depth knowledge of the product, ready to provide customers with appropriate explanations and suggestions, and promote customer confidence in the product and demand, in order to increase the number of products purchased for the store customers.

Average unit price of goods purchased

The aforementioned average number of goods purchased is aimed at increasing the "volume" of goods, but this point is aimed at increasing the "value" of goods, which is also related to the price of the overall series of goods, even if it is the same transaction, we should also strive to increase the unit price of goods purchased by customers. Even for the same transaction, it is necessary to strive to increase the unit price of the customer's purchase. Therefore, in the collection of products, it is necessary to be able to provide high value-added products in response to the needs of customers.

After analyzing the above factors, we can see that the way to increase the turnover of a retail store is through the combination of factors such as location, merchandise, and sales, rather than relying on the efforts of a single party.

□ Daily operation profile analysis (see "Terminal Operation Profile Daily Table")

With the increase of terminal sales competition, the corresponding work requirements and workload has also increased, in order to reduce the work pressure of the terminal owners, hereby formulate a new report with various types of reports and management information functions, which has the store sales commodity form analysis, sales pattern analysis, sales energy trend analysis, payback methods and fund management. Analysis, payback methods and funds management, commodity inventory management, customer service management, personnel management, goods management, store management and other functions, store management has a guiding, analytical, summarizing the important role of management.

1), business receipts and expenditures management

A, category analysis: focusing on the provision of various types of sales information, while also effectively reflecting the various types of average unit price, the total unit price of goods. The effective collection of this part of the information will provide a high value to the store's merchandise ordering, merchandise transfer.

Net turnover = turnover - sales discount - returns, exchanges.

Net Sales Ratio=Net Sales by Category ÷ Total Sales x 100%

Number of Pieces Sold: Fill in the number of pieces sold according to the sales on the computerized voucher, the number of pieces sold will be consistent with the sales column of the Inventory Management, otherwise it is an error.

Ratio of Sales Pieces=Number of Pieces Sold by Category ÷ Total Sales Pieces × 100%

Calculation of Price per Item: Price per Item by Category = Net Sales by Category ÷ Number of Pieces Sold by Category.

Average price per unit = total net sales ÷ total number of pieces sold

Calculation method: each individual category (net sales, number of pieces sold) ratio plus = 100%

B, discount ratio analysis: through the daily sales of discount statistics, it can be clearly seen that the shoppers' consumer groups, such as company relations, shoppers, group purchasing units, the management of the Department of In addition, it is possible to compare the differences in the mode of consumption of each store.

Discount ratio analysis: according to the computerized ticket discount classification statistics, correctly and truthfully filled out.

C, sales time analysis: mainly reflects the customer traffic, transaction number, transaction amount, and then projected the customer unit price of each time, so that it is easy to make the store manpower deployment, handover time. More importantly, it is able to analyze the consumption habits, purchase characteristics and consumption level of the customer flow in each time period.

Sales period analysis: According to the business period, the transaction amount and the number of transactions are counted separately, and then the customer unit price is calculated for each period.

D, sales trend analysis: mainly based on the last two same period sales, average sales, predict the sales trend.

Leap trend = (this week's sales - last week's sales for the same period) ÷ this week's sales

2), cash management

A, payback method analysis: the main monitoring of the store's daily sales of the payback method, the store's expected cash flow of the effective prediction and supervision.

B, cash receipts and disbursements statistics: can monitor the store's daily business cash flow (expenditure and remittance), cash balance, to facilitate the implementation of the responsibility for the handover of funds, the responsibility for safekeeping.

C, cash receipts and disbursements of the record: the record of overcollection, overpayment and short receipts, short payments. Mainly reflect the store's operation process on the cash of the abnormal situation, while ensuring that matters can be given to the real reflection, report, and give a timely solution.

3), inventory management

A, merchandise sales management: mainly reflects the store's various types of commodities daily purchases (returns), sales (sales return), inventory. It is easy to analyze the reasonableness of the inventory of goods according to the sales condition of the store, in order to take corresponding measures for the management of goods.

B, merchandise replenishment transfer management:

According to the sales situation, upward reporting on the store merchandise transfer, replenishment and other merchandise information. Favorable tracking of commodity information, and ensure the smooth flow of the department's workflow.

Goods exchange, if the exchange of styles, colors, should understand the return of the sales situation? Whether it is not selling well, timely response.

a, "the day's inventory" = the previous day's inventory + incoming - returns - sales + sales return.

Through the analysis of the day's inventory by category, combined with sales to determine the transfer into, out of the model number, the number of pieces, if the sales of goods, the inventory is not much, you need to apply for the transfer into the inventory; and inventory is more, but the sales are not very good products, then apply for the transfer out, or included in the main products.

Replenishment = estimated daily sales (average sales of a past cycle) × turnover days - current inventory - goods in transit.

b, the following daily account check:

Observation of which models are best-selling, best-selling models into the "best-selling models" column, while the inventory situation

status (allocation cycle) to determine the number of transfers into the number of pieces; which are models are slow-selling, slow-selling models based on inventory and actual sales as the "main push" tomorrow. tomorrow's "main products" or apply for "transfer out".

Observation of inventory details - color, size is complete, whether some models are about to break color and size? Should apply for timely replenishment of the case, should let all the store staff know, which section is about to break the color, broken code, now more inventory is what code, what color, in the process of product marketing to focus on.

Transfer in/out: to ensure the safety of inventory as a prerequisite for the adjustment of goods, to make the transfer in/out plan.

※ Example: Qingmeng store store display for: 1000 (500), daily sales of 15 pieces, the allocation cycle for 1 week, the Qingmeng store's safety stock = (1000 + 15 * 7) × 105% = 1160 pieces, of which 5% for the floating rate. Then in the store to meet the premise that there are 500 models *** 1160 pieces of products to apply for transfer into the best-selling models.

Transferred into the section number / quantity: best-selling, the current number is not much; out of code, can still be sold, need to replenish the code; group purchase, the number of more, must be transferred.

Transferring out the model number/quantity: best-selling, but it is estimated that the next stage can not be sold so much; slow-selling, the inventory is still very large); was notified of the transfer of goods.

4), market management

A, best-selling products management: exclude the day shopper subjective guidance factors, sales of large products; feedback on the price of best-selling products, style, color, style.

B, the main promotion of goods management: generally refers to the non-selling products must be strongly promoted, generally larger inventory, so that the store manager according to the inventory of goods in the store, the company's advocacy policy, the development of different periods of the main promotion of goods, in order to improve sales, and at the same time to avoid inventory.

C, customer complaint handling:

Business is not only to create customers, but also to retain customers.

Listening to customers v. complaints, never a pleasure, and sometimes feel nagging, annoying. Therefore, there are often shopkeepers who regard complaints as a nuisance, or turn a deaf ear, or just do a modest apology to deal with complaints. And specialty stores also think of customer complaints as extremely simple, or ignore them, or deal with them in a sloppy manner.

In fact, the complaints are extremely valuable customer voice, shoppers should not be perfunctory to customer complaints, avoid or stall, should be resolved from the front, in order to gain the trust of customers.

Today's customers, to the store to buy is a multi-level needs, rather than just tangible goods itself. Customers not only want to be able to buy the goods to their liking, but also want to get the care and respect of the receptionist. Whether to retain customers, to a large extent, depends on the customer on the quality of goods, the staff's service attitude, the sale of service attitude, after-sales service in a timely manner to fulfill the expectations of the realization, which is a key part of the shopper how to treat, how to treat, how to deal with the customer's complaints, due to some of the requirements of the staff to solve their problems, if there is no way to solve the problem, it must be reported to the immediate department in a timely manner to give a solution.

5), operations management

A, daily operations report: daily summary of the daily work, and in some columns to be noted, leave a message to remind the department to follow up matters.

B, personnel attendance management: reflecting the store personnel transfer, travel, leave, attendance status, while the side of the staff to provide staffing rationality, the rationality of the store manager's personnel management.

C, equipment / material maintenance: daily list of stores need to repair, or to be supplemented by the equipment, materials, easy to follow up on the daily matters, to protect the normal operation of the store.

Each store manager is the boss of a store, should have the ability to take charge of the management, to be responsible for the comprehensive preventive maintenance of store facilities, in the event of a problem, to try to solve it, when it is really can not be solved, please direct to the Department to help.

□ Weekly and monthly sales management (see Weekly Sales Report, Daily Sales Report)

1), weekly, monthly and other reports, sales report analysis, analysis and comparison with the last report, style, quantity, sales, last sales and the current analysis of best-selling styles.

A, analysis of the reasons for the performance increase or decrease

B, the performance of competing brands around the comparison, analysis of the gap

C, analysis of the existence of styles, the number of sales, in order to develop the gap in the goods

D, the difference between the styles, in order to develop the sales plan

2), the natural factors

A, the weather

A, weather causes < /p>

B, the market environment in the commercial area such as organizing events, shopping mall renovation, road repair in the commercial area.

C, the frequency and effect of the implementation of similar competitive brands of promotional activities

3), the customer file of the "customer management"

A, the collection of customer information

B, the establishment of customer files

Three Warehouse Management

□ what is the "logistics", "reverse logistics", "fast logistics"

Logistics is the physical flow of goods from the supply to the receiving end of the form; the warehouse is the center of logistics, plays an important role in the logistics. Logistics plays an important role, is to act as a buffer between supply and demand uncertainties; image: the nature of the warehouse is to like the old and the new.

Reverse logistics inventory is the sales season or stalls are not sold out of goods (returns, replacement).

The so-called rapid logistics response (OR) refers to the flow of goods to accurately and quickly meet customer demand, and in accordance with the ever-changing market situation, ready to make the correct and reasonable response.

□ Goods arranged in an orderly manner

1), goods should be arranged in a well-organized manner, at a glance.

2), the goods should be classified: classification should be based on style, color and bar code as the standard.

3), the best-selling goods to be arranged in the entrance, and easy to extract the shelves; non-best-selling goods can be arranged in the depths of the warehouse.

4), the same goods try to row in the same place.

5), set up the second goods to place the second goods to place the location, in order to deal with.

6), such as carton goods are labeled style, bar code, etc..

□ safety stock volume

Safety stock volume of reasonable settings for dealers and franchisees effective supply of goods and inventory effective avoidance plays an important role, the following on the safety stock volume set to provide the following methods for reference:

1), the safety stock and replenishment of the calculation method:

A, the franchisee is required to put their own monthly sales data and current inventory quantities sent to the General Manager. sales data and current inventory quantities to the general distribution.

B, the general distribution according to the forecast formula to calculate the franchisee's reasonable safety stock recommended value. The specific calculation method is as follows:

※Example: We start from January

A=Safety stock value in January

B=Monthly sales volume

CI=Safety stock in I month

Then C1=A1

C2=(A1+B1)×2/3

C3=(A1+B1+B2) ×2/4

C3=(A1+B1+B2) ×2/4

C3=(A1+B1+B2) ×2/4

C3 = (A1+B1+B2) ) × 2/4

C4=(A1+B1+B2+B3) × 2/5

.........

CI=(CI-1 + ∑BI-1) × 2/(I + 1)

Depending on the different situations of the franchisees, the master distributor sets a safety stock value at the initial stage, and when it is in operation, the master distributor calculates the safety stock recommendation and participates in the actual situation (such as promotions or seasonal factors) to make the corresponding modifications, and sends it down to the distributors.

C. Franchisees will participate in the safety stock recommendation value given by the general distributor, and set their personal safety stock quantity. And calculate the replenishment quantity, which is set as X.

Replenishment quantity X = recommended value of safety stock + quantity of stock in transit - current stock - undrawn stock in storage.

D. The General Distributor will receive the Distributor's replenishment order and measure whether the Distributor's replenishment quantity is reasonable or not, and the General Distributor will calculate the replenishment quantity based on the Franchisee's remaining inventory quantity and the recommended value of the safety stock, which is set to Y.

Z=(Y-X)/Y×100%

If Z is in the range of -20% or +20%, then the distributor's replenishment quantity is reasonable and can be continued.

2), 1.5 times the law of safety stock

The above franchisee inventory setup and analysis is a bit complicated, and depends on the total distribution and franchisee data transfer accurately, the requirements of its terminal operation system to be relatively perfect, in the actual operation of the process, but also can be applied to 1.5 times the law. The specific formula is as follows:

Reasonable inventory = [(last period's inventory + last period's inventory) - this period's inventory] × 1.5 times - this period's inventory

3), calculated on the basis of the actual sales:

Reasonable inventory = (the store's display of the amount of money + the average daily sales × sales cycle) × ( 1+5%) [sustained period of increase]

Reasonable inventory = (store's display amount + average daily sales × sales cycle) × (1-5%) [sustained period of decrease]

Reasonable inventory = reasonable inventory - store's display amount

4), store replenishment

Store estimated replenishment = estimated daily sales × turnover days + the number of stores - the current inventory - goods on the way

The above various methods of calculating safety stock, the actual situation of each franchisee and distributor, and the convenience of the work, choose a method of calculation, but note that, after the selection of a, it must be continued to use this method to ensure the correctness of the sales work.

□ Handover of merchandise count

1), the operation method: each shift will be required to display merchandise count once, each count to fill out the "shift count form", signed by the shift supervisor to confirm. If any error is found, the person in charge of the shift should be compensated according to the retail price of the goods owed, and issue a "sales sheet".

2), the operation time: once in the morning before business, once in the morning and evening handover, once in the evening before the end of the shift.

3), inventory operation:

A, the inventory of the significance of the work: each successful inventory, the store's daily operation and management, is an essential part of its management system, the significance of which lies in the following: allows the boss to accurately and timely understanding of the month's operating expenditures and profitability; in addition, through the inventory of the goods can be supported in a timely manner to control the information.

B, inventory work flow

a inventory before the preparatory work:

The store manager of the whole field of goods for the delineation of the area, the delineation of the area code labeled in the corresponding shelves in a conspicuous position, the sales staff of the goods area for the organization, categorization in order to prevent leakage of the disk, the disk less, the wrong disk.

The inventory table copy: clearly written name, commodity number, unit price, quantity, amount, etc., and according to the planned inventory order copy inventory table, so that the inventory of goods and the actual display of the same order. The last two lines of each inventory form are required to leave a blank space in case of omission and timely copying.

b inventory process: the initial point, the responsible person. The results of the initial count should be re-counted, if you need to change the initial number of points, only allowed to cross out the corrections, not allowed to be altered, to ensure that the inventory sheet neat and clean, the implementation of accountability.

c inventory of the aftermath of the work: after the end of the inventory, first of all, to restore the original display status, clean the channel to replenish the goods, in preparation for the continuation of normal business. Then, by reviewing the data on the inventory form, find out the information of the goods that have no inventory or less inventory, replenish the ordered goods in time to avoid the phenomenon of man-made stock-outs.

d If it is a monthly inventory, the results should be served to inform the branch manager, and check the store's manual account with the branch's computer account, if there is a loss of goods, will be compensated in accordance with the provisions of the management of information technology stores inventory strictly in accordance with the provisions of the software program and the requirements of the implementation.

4), large inventory

The whole inventory is generally 2 once or once a month, and large inventory is normally done 2-3 times a year.

The principle of the inventory: the account is consistent, and then the account is consistent.

V. Financial Management ("Balance Sheet", "Income Statement")

□ Asset Management Ratio

1) Inventory Turnover

Inventory Turnover = Cost of Goods Sold / [(Beginning Inventory + Ending Inventory) / 2]

Significance: Inventory turnover is the main indicator of the speed of inventory turnover. Improving the inventory turnover rate and shortening the business cycle can improve liquidity.

Analysis tips: inventory turnover speed reflects the inventory management level, the higher the inventory turnover rate, the lower the occupancy level of inventory, the stronger the liquidity, the faster the inventory is converted to cash or accounts receivable, which affects the short-term solvency.

2), inventory turnover days

Inventory turnover days = 360 / inventory turnover rate

= [360 × (opening inventory + closing inventory) / 2] / cost of goods sold

Meaning: the number of days it takes for a company to purchase inventory, put it into production and sell it out. Improving inventory turnover and shortening the business cycle can improve the company's liquidity.

Analysis tips: inventory turnover rate reflects the level of inventory management, the faster the inventory turnover rate, the lower the level of inventory occupancy, the stronger the liquidity, the faster the inventory is converted to cash or accounts receivable. It not only affects short-term solvency.

3), accounts receivable turnover

Accounts receivable turnover = sales revenue / [(accounts receivable at the beginning of the period + accounts receivable at the end of the period) / 2]

Significance: the higher the turnover rate of accounts receivable, indicating that the faster its recovery. On the contrary, it shows that too much working capital stagnant in accounts receivable, affecting the normal capital turnover and solvency.

Analytical tips: accounts receivable turnover, to be considered in conjunction with the business approach. The following cases using this indicator does not reflect the actual situation: first, seasonal business enterprises; second, the large number of installment collection settlement; third, the large number of sales using cash settlement; fourth, a large number of sales at the end of the year or the end of the year, a substantial decline in sales.

4) Business cycle

Business cycle = inventory turnover days + accounts receivable turnover days

={[(opening inventory + closing inventory)/2]×360}/cost of product sales + {[(opening accounts receivable + closing accounts receivable)/2]×360}/revenue from product sales

Significance: business cycle is from the acquisition of inventory beginning to the time until the inventory is sold and cash is collected. In general, the business cycle is short, indicating that the speed of capital turnover; business cycle is long, indicating that the speed of capital turnover is slow.

Analytical tips: business cycle, generally should be combined with inventory turnover and accounts receivable turnover situation and analyze. The length of the business cycle not only reflects the level of asset management, but also affects solvency and profitability.

□ Profitability Ratio

Profitability is the ability of a company to earn profits. Whether investors or debtors, are very concerned about this project, the following is a few more important in a few projects, analyze the following:

1), net sales margin

Net sales margin = net profit / sales revenue × 100%

Significance: This indicator reflects how much net profit is brought by each dollar of sales revenue. Indicates the level of return on sales revenue.

Analysis tips: increase sales revenue at the same time, must be corresponding to obtain more net profit in order to make the net sales margin remained unchanged or improved. Net sales margin can be broken down into gross margin, sales tax rate, cost of goods sold, sales during the expense ratio and other indicators for analysis.

2), gross sales margin

Gross sales margin = [(sales revenue - cost of goods sold) / sales revenue] × 100%

Significance: indicates that every dollar of sales revenue after deducting the cost of goods sold, how much money can be used for the period expenses and the formation of profit.

Analysis tips: gross margin of sales is the initial basis for the enterprise is the net sales margin, without a large enough gross margin of sales can not form a profit. Enterprises can analyze the gross margin of sales on a periodic basis, according to the enterprise sales revenue, cost of goods sold and cost of goods sold to make a judgment.