Raw material inventory turns

This measure calculates raw material inventory turns by dividing cost of goods sold (COGS) for the year by the average value of month-end raw material inventory for the most recently completed fiscal year. COGS represents the cost of purchasing raw materials and manufacturing finished products. Average value of month-end raw material inventory can be calculated as beginning of the year inventory plus end of year inventory divided by two. It is part of a set of Process Efficiency measures that help companies optimize the performance of their "produce product" process by minimizing waste and refining resource consumption.

Benchmark Data

Lock

Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership Arrow with stem

Measure Category:
Process Efficiency
Measure ID:
100076
Total Sample Size:
5,391 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

Sample image showing interactive filters for more detailed measure peer group data and an interactive graph.

Compute this Measure

Units for this measure are turns.

Back to Top

Raw material inventory turn rate

Key Terms

Back to Top

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

Back to Top

Cross Industry (7.3.1)

  • 4.3.2.1 - Manage raw material inventory (10310)
  • 4.3.2.2 - Execute detailed line schedule (10311)
  • 4.3.2.3 - Report maintenance issues (10319)
  • 4.3.2.4 - Rerun defective items (10313)
  • 4.3.2.5 - Monitor and optimize production process (19566)
    • 4.3.2.5.1 - Automate and control plant (19567)
    • 4.3.2.5.2 - Perform advanced process control (19568)
    • 4.3.2.5.3 - Perform real-time optimization (19569)
    • 4.3.2.5.4 - Manage plant alarms and alerts (19570)
  • 4.3.2.6 - Assess production performance (10314)