ratio of Purchase

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 October 2010 sir how much purchase required for sales in mfg. firm.. what should be the ratio of purchase and sales.
sir,request to all Ca-Club members please assist me with the example.
i am thankfull to all of you.
thanks
virender

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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20 October 2010 There cant be a standard ratio as it can vary from industry to industry.

You may rather focus on GP ratio, if the objective is to check the validity of purchases.

I would however say that if purchase exceeds sales, then it has to be investigated upon.

Hope this helps.