PawnMaster Blog

Inventory Turns Explained

When viewing the Inventory Turns and Inventory Yield in the Management Dashboard Report, it is very important to note the use of the word “Annualized”.

There are multiple methods for calculating turns that are acceptable for accounting. Two of the most common are Sales Divided by Average Inventory and COGS Divided by Average Inventory.

Make More Money Using Your PawnMaster Data: Inventory Turns

In my next post, you'll read about the Seven Habits of a Successful Pawnbroker. One of those habits is the effective use of the PawnMaster data. The first item I want to drill down on is running the Aged Inventory Report. This should be done at least quarterly, if not monthly. To view, this report, go to Reports and select the Inventory category. Select report #1, “Items in Inventory” and click print. On the first filter select “Aged Inventory”, on the second filter choose all items or select an item type to display. Generally, on the next filter, it is preferred not to include “Bulk Items”. Now enter your start and end days, such as 365 and 730, to display items in the shop more than one year but less than two.

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