Days of supply is a term used to quantify the number of days a given quantity will last under certain conditions. It can be applied to manufacturers (calculates the time between acquisition of materials and sale of finished products) and retailers (how long inventory will last without replenishing under predicted demand), among others. The calculation can also be applied to medication to determine the length of time medication will last with recommended usage.Know More
Calculate the number of doses being consumed on any given day. For instance, if the medicine needs to be taken every 12 hours, the number is 2.
Determine the number of available doses. For a new bottle that contains 100 pills, the number would be 100.
Divide the inventory figure by the number of doses used daily. In this case, the result would be 100/2 = 50 days.
To find the RevPAR of a hotel, multiply the average occupancy rate during a given time period time by the average daily room rate. RevPAR stands for revenue per available room, and is a financial measure that hotels use to evaluate their performance in a given time period.Full Answer >
To calculate covariance, choose two stocks and a time frame, calculate the average price for each stock over the time frame, find the deviation of each stock, multiply the two deviations together, add the results, and divide by the total number of days. Calculating an investment covariance requires a list of historical prices, as it is a statistic that looks at historical prices to determine the relationship between two stocks or two bundles of stocks.Full Answer >
Business owners calculate gross revenue by multiplying the quantity of goods or services sold during a specific period by the sales price for each item, as explained by the Udemy website. Basically, revenue is the amount of money a company generates from its primary business activities.Full Answer >
To calculate operating profit, subtract operating expenses from gross profit. Also referred to as operating income, operating profit represents the total profits, before taxes, that a business generates from its operations. This figure helps investors, potential buyers and owners determine the overall health of a company's core business practices.Full Answer >