Glossary
Inventory turnover
Inventory turnover is how many times you sell through and replace your average stock in a period, found by dividing cost of goods sold by average stock.
What it means for a shop owner
A higher number means cash is not sleeping on the shelves and a lower one means slow goods. Compare your own items with each other, not with another shop, since food turns faster than furniture. Review it monthly.
A worked example
Cost of goods sold in a year is 120000 and average stock is 20000, so turnover is 6 times a year, about every two months.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes