Loss as a percentage of NP

[Dave A]

But, if your business is running a loss because of stock (and cash, but that's a whole other story) loss etc. How do you calculate he amount of turnover needed to recoup that loss?

If you really need that number (I can only assume because stock losses are an embedded risk for some reason and you have to provide for the risk rather than prevent it), you should perhaps frame it around gross profit (ordinary income less cost of sales) rather than EBITDA or nett profit.

[Blurock]

If you really need that number (I can only assume because stock losses are an embedded risk for some reason and you have to provide for the risk rather than prevent it), you should perhaps frame it around gross profit (ordinary income less cost of sales) rather than EBITDA or nett profit.

Agreed Dave, stock losses due to pilferage/shoplifting or perishable goods should be added to cost of sales. That can be fairly accurately calculated from historical trends and added to your input cost.