Inventory Turnover Ratio - Smarter Sales & Inventory Management | Zayls

by Zayls
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Knowledge Base Reports | Inventory Turnover Ratio

Inventory Turnover Ratio Report

The Inventory Turnover Ratio Report provides users with an overview of the inventory turnover ratio of their products.

This report highlights:

  • How long it takes for a product to get sold
  • How many times the inventory has been sold and replaced
  • The average inventory of the product

The information that this report provides enables decisions with regard to the frequency and quantity of restocking a product.

Inventory Turnover Ratio Report Overview

Report Filters

  • Date From – This filter will make it so that all transactions used for the report would only start from the date selected.
  • Date To – This filter will make it so that all transactions used for the report would only be up to the date selected.
  • Brand – This filter will make it so that only products of this brand are displayed in the report.
  • Category – This filter will make it so that only products of this category are displayed in the report.
  • Product – This filter will show all product variants of the product selected. If there is an existing filter in the Category, the Product filter will only display all products under the selected category.
  • Stock Type – This filter will make it so that only products of this stock type are displayed in the report.
  • Include Products with no sales within the period – This filter will make it so that products with no sales within the period would still be displayed.

Products without sales are hidden by default because a product needs to have sales within the period for the inventory turnover ratio to be computed.

Inventory Turnover Ratio Report Columns

  • Product – This column shows all products and their SKU.
  • Average Inventory Quantity – The average quantity on-hand of the product during the date period.

( Beginning Inventory Quantity + Ending Inventory Quantity ) / 2

  • Average Inventory Amount – The average total inventory cost of the product within the date period.

( Beginning Inventory Amount + Ending Inventory Amount ) / 2

  • Quantity Sold – The total quantity sold of the product within the period.
  • Total Sales – The total sales of the product within the period.
  • Cost of Goods Sold – The total inventory cost of the products sold.
  • Turnover Ratio – A ratio showing how many times the product has been sold and replaced within the date period.

Cost of Goods Sold / Average Inventory Amount

  • Days in Inventory – An estimated number of days it takes for the product in the inventory to be sold.

No. of days within the period / Turnover Ratio

Having a zero Average Inventory Amount will result in the Turnover Ratio and Days in Inventory to be displayed as a dash (—). This is because dividing over a zero would result in an undefined value.

Export Inventory Turnover Ratio Report to PDF or Excel

  1. In the Inventory Turnover Ratio Report, click Export. 
  2. There are two Export options: Export to PDF and Export to Excel. Click your desired format. 
  3. Upon clicking your desired format, the file will be automatically downloaded to your computer. 
  4. You may also view the Export History of the report.

Related article: Inventory Availability