Premium Reports - Inventory Turnover

Inventory Turnover

These reports are used for measuring how much inventory has been sold and replaced over a given period of time. You can customize this time period via the date range (top right).

Note that only items that have been sold are included on a Turnover report.

Generally speaking, a good high inventory turnover percentage indicates that a product is selling well and frequently needs to be restocked.

A low inventory turnover percentage indicates that a product is selling infrequently, is overstocked, or both. See this Shopify guide here for more information.

These reports follow a similar format, split up into:

Inventory Turnover (Available)

This report is ideal for working out turnover based on the quantity sold compared to how much was in stock

Here are a few terms to be familiar with in order to understand Inventory Turnover (Available)

**1.) Available (Start):**The number of units/total cost of the product at the start of the time period. This is determined by the first date on the date range (top right).

**2.) Available (End):**The number of units/total cost of the product at the end of the time period. This is determined by the last date on the date range (top right).

3.) Total Available (Avg of Range). This is an average calculated by taking Available (Start) plus Available (End) divided by 2.

4.) Inventory Turnover (Available). The Quantity of goods sold over the period divided by the Available (Avg of Range) and then multiplied by 100.

5.) Stock to Sales Ratio. Available (End) divided by Quantity sold.

Inventory Turnover (Cost)

This report is used to work out turnover based on the cost of goods sold (COGS) compared to the average cost in stock.

Here are a few terms to be familiar with in order to understand Inventory Turnover (Cost)

**1.) Total cost (Start):**The cost-based inventory value at the start of the time period. This is determined by the first date on the date range (top right).

2.) Total cost (End): The cost-based inventory value at the end of the time period. This is determined by the last date on the date range (top right).

3.) Total cost (Avg of Range): This is an average calculated by taking Total cost (Start) plus Total cost (End) divided by 2.

**4.) Cost:**The total Cost of goods sold (COGS) over the period

5.) Inventory Turnover (Cost): The total Cost of goods sold (COGS) over the period divided by the Cost (Avg of Range) and then multiplied by 100.

6.) Gross Profit: The Net Sales minus the Cost of Goods Sold (COGS).

7.) GMROI: The Gross Margin Return on Investment (GMROI), which is Gross Profit divided by Cost, as a ratio

Like all Report Toaster reports, these reports are fully customizable - so you can adjust the date range, add/remove columns, introduce a filter or change the sort to suit your individual needs. See our basic guides here for more info.