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). 

Inventory History needs to be enabled by our Report Toaster staff. Please contact us to support@cloudlab.com so we can set these reports up for your account

As Premium Reports, these are available on all Paid Plans of Report Toaster. If you aren't signed up, follow these steps to upgrade your account. 

Please note - Inventory History is only tracked from the time this feature is enabled for your account.

For example, if we enabled the feature for you on 6/20/23, you would have Inventory history from this date onwards

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). 

For example, the report is set to Last 30 Days and today is 5/20/23. If I had 1 T-shirt in stock on 4/20/23, then  Available (Start) would be 1 for that Product.

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). 

If I now have 2 of that t-shirt left in stock on 5/20/23 at the end of the time period, then Available (End) would be 2.

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

For example, if the Available (Start) was 1 and the Available (End) was 2, then the Available (Avg of Range) would be (1+2)/2 = 1.5

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

For example, if the Quantity sold was 4 and the Available (Avg of Range) was 1.5, then Inventory Turnover (Available) would be 34/1.5 x 100 = 266.67% 

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

For example, if the Available (End) was 2 and I sold 4, then Stock to Sales Ratio would be 2/4 = 0.5

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). 

For example, the starting cost value of those t-shirts 30 days ago was 27.80. 

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). 

For example, the ending cost value of those t-shirts today is 55.60. 

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

For example, if the Total cost (Start) was $27.80 and Total cost (End) was $55.60, then the Total cost (Avg of Range) would be (27.80 + 55.60)/2 = $41.70

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

For example, if I sold 4 t-shirts at a cost of $27.80 each, then the COGS would be $111.20

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.

For example, if the Cost of goods sold was $111.20 and the Cost (Avg of Range) was $41.70, then Inventory Turnover (Cost) would be 111.20/41.70 x 100 = 266.67% 

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

For example, if the Net Sales was $278.00 and the COGS was $111.20, then the Gross Profit would be 278.00 - 111.20 = $166.80

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

For example, if the Gross Profit was $166.80 and the Total Cost (Avg of Range) was 41.80, then 166.80 / 41.80 = 4.00 

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.

If you want to see your Inventory History, check out our similar reports here.

• Related Articles

• Premium Report - Stock Report

  Stock Reports Stock Reports are used to compare how much of something has been sold vs how much you have in stock at each of your different locations. These reports follow a similar format to the Sell Through Reports, but the available quantity ...

• Premium Reports - Inventory History

  Inventory History Inventory history reports are used for tracking changes to inventory at either a given point in time (e.g. Today) or over a select period (e.g. Last 30 Days). You can customize this time period via the date range (top right). ...

• Premium Report - Dead Stock Products/Variants

  Dead Stock Products/Variants For merchants who are wanting to tidy up their inventory or perhaps work out which items to discount, Dead Stock reports are useful to see which items have not been selling over a given time period. This report follows a ...

• Premium Report - Inventory Value by Location

  Inventory Value by Location Inventory Value Reports are used by merchants to see how much the amounts and value of their current stock. For merchants who store inventory at multiple locations however, sometimes it's important to see your stock on a ...

• Premium Report - ABC Inventory

  ABC Inventory Much like the Shopify ABC Inventory Analysis report, this report asigns a letter grade (A, B, or C) to each inventory item based on its sales performance. For those of you who aren't familiar with Shopify's ABC grade for Inventory, the ...