Worth Its Weight: Understanding Stock Valuation

What you’ll need

1. Access to the TaoRocket Console
2. Permissions:
   • Manage inventory
   • View cost of items (optional)
   • View inventory profit (optional)

1. What is Stock Valuation?

Stock valuation represents the total monetary value of your current inventory. It’s a key metric to understand your business’s asset worth and cost control.
In TaoRocket, stock valuation is calculated based on the average cost of items multiplied by their quantities on hand.

2. How TaoRocket Calculates Stock Value

• For each tracked item, TaoRocket multiplies the quantity on hand by the average purchase cost.
• For composite items, the valuation includes the cost of their components.
• Adjustments, production, purchase orders, and sales all affect the average cost and stock levels.

3. Accessing Stock Valuation Reports

• Navigate to Inventory → Stock Valuation in the console.
• View a detailed list of items with their quantities, average costs, and total values.
• Filter or sort by store, category, or other parameters.

4. Using Stock Valuation Insights

• Monitor your inventory value to manage cash flow and reduce waste.
• Identify high-value stock and optimize purchasing decisions.
• Use valuation data to support accounting and financial reporting.

What’s next?

• 🔗 Inventory Management: Review & Next Steps

🎉 With a clear understanding of your stock’s value, you’re well prepared to take full control of your inventory. For a comprehensive recap and next steps, explore our [Inventory Management: Review & Next Steps] guide to keep your restaurant running smoothly!