MihsabaHow to use
Calculate the difference between book inventory and physical count plus shrinkage percentage against book inventory.
- Enter Book inventory.
- Enter Physical inventory.
- Calculate, then review the metric definition and comparison limits.
How it is calculated
Example
Book inventory of 100,000 and physical inventory of 96,000 mean a difference of 4,000 and shrinkage of 4%.
Important notes
Use one basis: units with units or cost value with cost value. If physical inventory exceeds book inventory, a negative rate signals an overage requiring reconciliation.
Worked examples and interpreting results
Book inventory of 100,000 and physical inventory of 96,000 mean a difference of 4,000 and shrinkage of 4%.
| Case | Calculation | Result |
|---|---|---|
| Difference | 100000 − 96000 | 4,000 |
| Shrinkage rate | 4000 ÷ 100000 × 100 | 4 % |
How to check the result
Use one basis: units with units or cost value with cost value. If physical inventory exceeds book inventory, a negative rate signals an overage requiring reconciliation.
Frequently asked questions
Can the rate be negative?
Yes, when physical inventory exceeds book inventory; that represents an overage requiring explanation and reconciliation.
Should the inputs use the same period?
Yes. Use figures from the same reporting period and accounting definition so balances and flows remain comparable.
Is the result enough for a decision?
No. The metric summarizes a numerical relationship; compare it with company history, industry context, and accounting or operating policies.