Increasing your stock turn in a slow-moving economy

Increasing your stock turn in a slow-moving economy

If you sell stock or inventory, it’s essential you understand stock turn and how to increase it. Obsolete, or ‘dead’ stock will harm your cashflow and your ability to increase profit, particularly in a slower-moving economy. The longer stock takes to sell, the longer...
Your critical numbers

Your critical numbers

The Covid-19 crisis has created a “new normal” for businesses. Traditional ways of working are being challenged and we now need to innovate, adapt, re-engineer, and reinvent the way we work. Lockdown gave us time to consider our options, but two important questions...
Critical numbers – Your stock turn

Critical numbers – Your stock turn

If you sell stock or inventory, it’s essential you understand stock turn and how to increase it. Slow-moving, obsolete, or ‘dead’ stock will seriously reduce both your cashflow and your ability to increase your profit. The longer stock takes to sell, the longer you...
Critical numbers – Your lock up days

Critical numbers – Your lock up days

Your lock up days is the number of days it takes to convert your debtors, stock and work in progress into cash. The higher your lock up days, the more cash is needed in the business (either from you or the bank), and the higher the risk of losing that cash. Worse,...
Critical numbers – The working capital cycle

Critical numbers – The working capital cycle

Profitable businesses can go broke simply because they don’t manage their working capital cycle and run out of cash. Your working capital cycle is the number of days your cash is tied up to take your goods and services through the sales process. The longer the...