# Cycle count

A term used when buying plumbing supply house.

Counting a slice of the warehouse on a rolling schedule instead of the whole of it once a year.

It is the cheapest signal there is about whether a balance sheet has ever been tested. A house that counts a slice of the warehouse every week finds its errors while they are small and knows what its stock is worth on any given day. A house that counts once a year, or has stopped counting, is quoting a number nobody has checked. Ask when the last full count happened, what adjustment it produced, and whether anybody is authorized to write something off without the owner in the room.

Part of: Buying a Plumbing Supply House (https://searchspheresource.com/guides/buying-a-plumbing-supply-house)

Source: https://searchspheresource.com/guides/buying-a-plumbing-supply-house/terms/cycle-count