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


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Measure Category:
Process Efficiency
Measure ID:
Total Sample Size:
5,391 All Companies
25th Median 75th
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Key Performance Indicator:

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Compute this Measure

Units for this measure are turns.

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Raw material inventory turn rate

Key Terms

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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

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Cross Industry (7.3.1)

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