Target Inventory Investment Calculator

✖Projected Annual Cost of Goods Sold from Stock Sales is a realistic projection of what your sales from warehouse stock will be (at cost) during the next 12 months.ⓘ Projected Annual Cost of Goods Sold from Stock Sales [COGS]			+10% -10%
✖Target inventory turnover is the theoretical measure of how often, at the current rate of sales, you sell your entire inventory in one year.ⓘ Target Inventory Turnover [TI Turnover]			+10% -10%

✖Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year.ⓘ Target Inventory Investment [TI Invt]

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Formula

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Target Inventory Investment

Formula

`"TI Invt" = "COGS"/"TI Turnover"`

Example

`"10000"="200000"/"20"`

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Target Inventory Investment Solution

STEP 0: Pre-Calculation Summary

Formula Used

Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover
TI Invt = COGS/TI Turnover
This formula uses 3 Variables

Variables Used

Target Inventory Investment - Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year.
Projected Annual Cost of Goods Sold from Stock Sales - Projected Annual Cost of Goods Sold from Stock Sales is a realistic projection of what your sales from warehouse stock will be (at cost) during the next 12 months.
Target Inventory Turnover - Target inventory turnover is the theoretical measure of how often, at the current rate of sales, you sell your entire inventory in one year.

STEP 1: Convert Input(s) to Base Unit

Projected Annual Cost of Goods Sold from Stock Sales: 200000 --> No Conversion Required
Target Inventory Turnover: 20 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

TI Invt = COGS/TI Turnover --> 200000/20

Evaluating ... ...

TI Invt = 10000

STEP 3: Convert Result to Output's Unit

10000 --> No Conversion Required

FINAL ANSWER

10000 <-- Target Inventory Investment

(Calculation completed in 00.004 seconds)

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Credits

Created by Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 600+ more calculators!

Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

Himanshi Sharma has verified this Calculator and 800+ more calculators!

< 22 Business Calculators

Macaulay Duration

Go Macaulay Duration = sum(x,1,5,Cash Flow Number,((Cash Flow/(1+Yield to Maturity (YTM)/Compounding Periods))^Cash Flow Number))*(Time in Years/Present Value)

Weighted Average Cost of Capital

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

Operating Expense Ratio

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

Break-Even Point

Go Break Even Point = Fixed Costs/Contribution Margin per Unit

Estimated Earnings

Go Estimated Earnings = Forecasted Sales-Forecasted Expense

Debt Coverage Ratio

Go Debt Coverage Ratio = Net Operating Income/Debt Service

Dividends Per Share

Go Dividends Per Share = Total Dividends/Number of Shares

Solvency Ratio

Go Solvency Ratio = (Shareholders Fund*100)/Total Assets

Estimate at completion

Go Estimate at Completion = Actual Cost+Bottom up ETC

Percentage off

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

Preferred Stock

Go Preferred Stock = Dividend/Discount Percentage

Days in Inventory

Go Days in Inventory = 365/Inventory Turnover

Target Inventory Investment Formula

Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover
TI Invt = COGS/TI Turnover

How to Calculate Target Inventory Investment?

Target Inventory Investment calculator uses Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover to calculate the Target Inventory Investment, Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year. Target Inventory Investment is denoted by TI Invt symbol.

How to calculate Target Inventory Investment using this online calculator? To use this online calculator for Target Inventory Investment, enter Projected Annual Cost of Goods Sold from Stock Sales (COGS) & Target Inventory Turnover (TI Turnover) and hit the calculate button. Here is how the Target Inventory Investment calculation can be explained with given input values -> 10000 = 200000/20.

FAQ

What is Target Inventory Investment?

Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year and is represented as TI Invt = COGS/TI Turnover or Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover. Projected Annual Cost of Goods Sold from Stock Sales is a realistic projection of what your sales from warehouse stock will be (at cost) during the next 12 months & Target inventory turnover is the theoretical measure of how often, at the current rate of sales, you sell your entire inventory in one year.

How to calculate Target Inventory Investment?

Target Inventory Investment is the difference between goods produced (production) and goods sold (sales) in a given year is calculated using Target Inventory Investment = Projected Annual Cost of Goods Sold from Stock Sales/Target Inventory Turnover. To calculate Target Inventory Investment, you need Projected Annual Cost of Goods Sold from Stock Sales (COGS) & Target Inventory Turnover (TI Turnover). With our tool, you need to enter the respective value for Projected Annual Cost of Goods Sold from Stock Sales & Target Inventory Turnover 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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