Stock intensity

The inventory intensity (also warehouse intensity ) is an economic key figure that is intended to provide information about the capital commitment in the inventories of raw , auxiliary and operating materials (RHB) as well as of semi- finished and finished products .

General

In the context of internal or external balance sheet analysis, the inventory intensity is a category of asset analysis because it examines the structure within the current assets of a balance sheet . It is also referred to in the specialist literature as the storage intensity or degree of storage . The inventory intensity plays a role in particular in inventory or warehouse-intensive operations (e.g. trade , plant , aircraft and shipbuilding ), where the capital commitment of the inventory is a central business issue. Stock-intensive companies are those companies where the share of storage costs in the total costs or the share of stock in the total assets is significant and makes up more than 25% of the assets. This tie-up of capital causes tie-up costs such as storage costs and / or interest on loans that affect profitability .

calculation

The corresponding inventory assets for the numerator , the total assets or the balance sheet total for the denominator of the formula are taken from the annual financial statements . The counter shows the balance sheet items raw materials and supplies (RHB) and / or semi-finished and finished products.

${\displaystyle {\text{Vorratsintensität RHB}}={\frac {{\text{RHB}}\cdot 100\,\%}{\text{Bilanzsumme}}}}$

${\displaystyle {\text{Vorratsintensität Halb- und Fertigfabrikate}}={\frac {{\text{Halb-, Fertigfabrikate}}\cdot 100\,\%}{\text{Bilanzsumme}}}}$

As an alternative to total assets, sales can be used as a benchmark.

Changes over time are particularly important. However, the interpretation is not always clear. A high or increasing inventory intensity can indicate the targeted use of favorable purchasing conditions ( acquisition costs , discounts ) as well as deficiencies in the warehouse organization or long production times. If the inventory intensity increases, more and more capital is tied up, which leads to a reduction in liquidity and increases the capital requirement. A high inventory intensity is a great storage risk because the risk of loss (e.g. through theft ), obsolescence and shrinkage increases.

The inventory intensity can be measured over time in the same company or by comparing companies with other companies in the same branch . If the stock intensity deviates negatively from the branch average, an increased risk is assumed in the stock area. The main causes of a conspicuously high inventory intensity are primarily overstock . However, these can also occur due to the economic situation.

Measures to improve stock levels include shortening storage times , introducing just-in-time production (at RHB) or eliminating sales obstacles for finished products.

See also

• Warehousing

Individual evidence

1. ↑ Lorenz Wolkersdorf, Essence and Significance of Plant Intensity in Industrial Operations , 1956, p. 32
2. ↑ Helmut Geyer, Praxiswissen BWL , 2013, p. 183
3. ↑ Jörg Wöltje, Investment and Financing , 2013, p. 524
4. ↑ Rolf Scheffels, Fuzzy logic in the annual audit , 1996, p. 125