Stock is the term for all the stuff a store or company has to sell, be it toilet paper, automobiles or clothing. People stock up on toilet paper when they run out, car thieves stock up when they’re running out of gas and stock boys stock the shelves at stores.
A good stocktake will give you an accurate count of the number of items that are in your warehouse. This can help you keep track of your inventory and make sure you’re buying the right amount at the right time.
This process is important to your business and will help you keep a record of how much inventory you have on hand at any one time, which can be used to budget for new stock. It’s also useful for keeping your suppliers informed about the volume of your stock, which can help them provide you with accurate quotes and prices for the materials you use to make your products and services.
It’s a crucial part of your stock control and should be undertaken regularly to ensure you don’t end up with excess stock or unintentionally miscounted items. This will save you money in the long run by reducing stock returns and helping you avoid making impulsive purchases.
You can count inventory on a sheet of paper or with an electronic stock register. You may need a magnifying glass or clipboards to accurately count small items, a calculator for measuring quantities and pens and paper for recording the results.
There are different ways to take stock of your inventory and you should consider which method will work best for your business. You can use a digital stock control system to automatically count your inventory for you, which will free up your staff to do more useful tasks.
A physical stock take will usually involve you marking the boxes or shelves in your warehouse if they contain product that isn’t visible, walking around the warehouse and looking for anything that might be mislaid, stacked too high, or sitting out of place. You should also take note of any products that aren’t properly labeled and packaged, which could indicate fraud or a problem with the production or delivery of your products.
Your count should be as close to 100% accurate as possible, so don’t estimate or guess at any numbers and be sure to mark the discrepancy on your sheet. You can then compare the count you’ve taken with the counts registered in your electronic stock control system to see if there is any gap or discrepancy.
Intrinsic Value and Market Price
Using fundamental analysis, you can discover the true value of a stock or any asset. You can do this by analyzing the company’s financial statements and its industry and environment. You can also take a look at its historical price action and compare it with its real-time market value to get an idea of what its intrinsic value is.