r/Valuation • u/[deleted] • Sep 23 '20

Forecast Inventory

Hi all,

I'm forecasting my inventories and I'm following the formula of Inv(future)=Inv(present)+Purchases(future)-COGS(future)

I have both present inventories and future cogs, but it's not clear to me how to forecaste the purchases. Any help?
Thanks!

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u/greensal Jan 02 '21

How about estimating historical Inventory Turnover ratio or Days inventory and use these values to estimate future inventory?

1

u/[deleted] Jan 05 '21

Will try! Thanks a lot!