Inventory Shrinkage Calculator

✖Recorded Inventory contains data about the items a company has in stock, such as the amount of inventory on hand, what's been sold and reordered, and where it's stored.ⓘ Recorded Inventory [RI]			+10% -10%
✖Actual Inventory refers to the stock in hand a business has in real.ⓘ Actual Inventory [I]			+10% -10%

✖Inventory Shrinkage is an accounting term that describes the difference between inventory that is recorded and what is actually in physical inventory, indicating a loss in inventory.ⓘ Inventory Shrinkage [IS]

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Formula

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Inventory Shrinkage

Formula

`"IS" = (("RI"-"I")/"RI")*100`

Example

`"25"=(("500"-"375")/"500")*100`

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Inventory Shrinkage Solution

STEP 0: Pre-Calculation Summary

Formula Used

Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100
IS = ((RI-I)/RI)*100
This formula uses 3 Variables

Variables Used

Inventory Shrinkage - Inventory Shrinkage is an accounting term that describes the difference between inventory that is recorded and what is actually in physical inventory, indicating a loss in inventory.
Recorded Inventory - Recorded Inventory contains data about the items a company has in stock, such as the amount of inventory on hand, what's been sold and reordered, and where it's stored.
Actual Inventory - Actual Inventory refers to the stock in hand a business has in real.

STEP 1: Convert Input(s) to Base Unit

Recorded Inventory: 500 --> No Conversion Required
Actual Inventory: 375 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

IS = ((RI-I)/RI)*100 --> ((500-375)/500)*100

Evaluating ... ...

IS = 25

STEP 3: Convert Result to Output's Unit

25 --> No Conversion Required

FINAL ANSWER

25 <-- Inventory Shrinkage

(Calculation completed in 00.004 seconds)

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Credits

Created by Kashish Arora

Satyawati College (DU), New Delhi

Kashish Arora has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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< 22 Business Calculators

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Go Weighted average cost of capital = ((Market value of the firm’s equity/Firm Value)*Cost of Equity)+(((Market Value of the Firm’s Debt/Firm Value)*Cost of Debt)*(1-Corporate Tax Rate))

Total Inventory Cost

Go Total Inventory Cost = Carrying cost per unit per year*(Quantity of Each Order/2)+Fixed cost per order*(Demand in units per year/Quantity of Each Order)

Acid Test Ratio

Go Acid Test Ratio = (Cash+Accounts Receivable+Short Term Investments)/Current Liabilities

Economic Order Quantity

Go Economic Order Quantity = ((2*Fixed cost per order*Demand in units per year)/Carrying cost per unit per year)*(1/2)

Return on Capital Employed

Go Return on capital employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100

Diluted Earnings per Share

Go Diluted Earnings per Share = Net Income/(Average Shares+Other Convertible Securities)

Inventory Shrinkage

Go Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100

Modified Duration

Go Modified Duration = Macaulay Duration/(1+Yield to Maturity (YTM)/Coupon Periods)

Target Inventory Investment

Go Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover

Retention Ratio

Go Retention Ratio = (Net Income-Dividend)/Net Income

Contribution Margin per Unit

Go Contribution Margin per Unit = Sales Price per Unit-Variable Cost per Unit

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Go Operating Expense Ratio = (Operating Expense/Gross Operating Income)*100

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Percentage off

Go Percentage Off = 1-(Selling Price/Original Price)

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Go Preferred Stock = Dividend/Discount Percentage

Days in Inventory

Go Days in Inventory = 365/Inventory Turnover

Inventory Shrinkage Formula

Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100
IS = ((RI-I)/RI)*100

What is Inventory Shrinkage?

Inventory Shrinkage occurs when the number of products in stock are fewer than those recorded on the inventory list. The discrepancy may occur due to clerical errors, goods being damaged or lost, or theft from the point of purchase from a supplier to the point of sale.

How to Calculate Inventory Shrinkage?

Inventory Shrinkage calculator uses Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100 to calculate the Inventory Shrinkage, The Inventory Shrinkage formula is defined as the difference between the amount or value of inventory recorded in a business's accounting records (book inventory/value) and the amount or value actually in stock (actual inventory/value). Inventory Shrinkage is denoted by IS symbol.

How to calculate Inventory Shrinkage using this online calculator? To use this online calculator for Inventory Shrinkage, enter Recorded Inventory (RI) & Actual Inventory (I) and hit the calculate button. Here is how the Inventory Shrinkage calculation can be explained with given input values -> 25 = ((500-375)/500)*100.

FAQ

What is Inventory Shrinkage?

The Inventory Shrinkage formula is defined as the difference between the amount or value of inventory recorded in a business's accounting records (book inventory/value) and the amount or value actually in stock (actual inventory/value) and is represented as IS = ((RI-I)/RI)*100 or Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100. Recorded Inventory contains data about the items a company has in stock, such as the amount of inventory on hand, what's been sold and reordered, and where it's stored & Actual Inventory refers to the stock in hand a business has in real.

How to calculate Inventory Shrinkage?

The Inventory Shrinkage formula is defined as the difference between the amount or value of inventory recorded in a business's accounting records (book inventory/value) and the amount or value actually in stock (actual inventory/value) is calculated using Inventory Shrinkage = ((Recorded Inventory-Actual Inventory)/Recorded Inventory)*100. To calculate Inventory Shrinkage, you need Recorded Inventory (RI) & Actual Inventory (I). With our tool, you need to enter the respective value for Recorded Inventory & Actual Inventory and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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