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It is dangerous to see only sales growth in the goods market.
Popular IP products increase in sales in short periods.
However, if you read the trend, the inventory remains, and the profit can be sharpened by discount sales.
If you are investing, it is not only sales, but also coarse interest rate, inventory and inventory rotation.
In this section, we will divide the inventory risk of goods companies into the way they see sales and the rest of the profit.
Goods market is easy to stock
Goods are products that are easy to be affected by trends.
Popular characters can be sold at once.
However, when the boom is over, it will be sold.
In particular, the following products have higher inventory risk:
- Events
- Seasonal products
- Popular Character Products
- Unpopular Frame for Random Products
- Mass production collaboration products
Goods are small, so they tend to be seen lightly, but when stock is piled up, the funds will be overwhelmed.
Why profits are not left even if sales increase
It is a pattern that the profit rate falls even though the sales are increasing frequently in the goods company.
There are several reasons:
- Save the remaining
- More storage costs
- Disposal and return
- Unpopular products remain
- Remove the timing of additional production
It looks like a growth company if you look at only sales.
However, if the profit is not left, the investor is calm.
In the goods market, there are scenes to see cash from profit and profit from sales.
Stock Indicators
The following indicators are useful if you look at them in corporate analysis:
| 指標 | 見方 |
|---|---|
| Stock Information | Is inventory too much? |
| Inventory rotation rate | How fast is inventory sold? |
| 粗利率 | the profit margin has not been dropped by the discount |
| Sales CF | Is sales cashable? |
| Sales rate | Does the store, labor costs, and logistics costs are heavy? |
In particular, there are many people who are thinking about inventory.
If inventory is increasing at a faster pace than sales, it will be a little wary.
IP dependencies
Strong IP is a big weapon.
However, if it depends on a specific IP, its popularity decreases as it is.
If you are using another company's IP, you can not remove the license condition.
If you are not selling, the profit will be less likely to remain.
If you are looking for an investment, you can choose whether your IP is your own or your IP is commercialized.
Mix here to read the profit structure.
In the goods market, only sales growth can determine the strength of the company.
What is important is that the inventory is not too tight, keeping the coarse interest rate and making cash.
When you sell popular IP products, it is fast, but if the trend changes, the inventory will be heavy.
If you are investing, you want to check sales, coarse interest rate, inventory and sales CF.