The inventory turns report helps you to better assess your inventory performance and get a comprehensive view of which brands and categories have been driving your business.

To access this report, navigate to Reporting > Inventory reports and click the Inventory turns tab.

By default, the Report type is set to Product category. You can select a different report type:

• Product
• SKU name
• Brand
• Outlet
• Supplier

You can also change the Measure:

• All inventory
• On-hand inventory
• Low inventory
• Out of stock

Use the Date range calendar picker to select the date range you'd like the report to include.

Benefits of the inventory turns report

The inventory turns report includes the measures for days cover, gross profit, cost of goods sold, GMROI, and inventory turns. With this information, you can:

• Optimize inventory planning and strategy by understanding how quickly your inventory turns, sells, and how profitable it is.
• Use the data to gauge how effective your overall inventory investment was at driving profitability during specific date ranges.
• Maintain effective inventory spending and investments by identifying which categories of your inventory are best driving your business and desired outcomes.
• Make informed inventory purchasing decisions and optimize the targets you set for your business to help achieve your goals.

Understanding the report columns

The report columns include historical measures:

• Product category: Lists top-level product categories. In the product cells, use the double arrow icon to expand and display, or collapse and hide, sub-categories in the report. Products without an assigned product category are displayed together in the No product category group.

  

• Closing inventory: Your inventory at the end of your selected date range.
• Days cover: The number of days before your closing inventory will run out based on items sold per day.
• Cost of goods sold (COGS): Total cost of products sold based on average cost at the time of each sale.
• Gross profit: Total revenue less the total cost of goods sold over the reporting period.
• Gross Margin Return on Investment (GMROI): How efficiently gross profit is generated from the inventory held over the reporting period, calculated as gross profit divided by average inventory value.
• Inventory turns: Number of times inventory has been sold and replaced over the reporting period, calculated as costs of goods sold divided by average inventory value. Assesses the velocity of sales to show inventory health and contributions to gross profit.

Using categories and sub-categories

By default, the inventory turns report is set up like a category report to help you learn more about which product categories are best driving your business and profitability. The report:

• Highlights GMROI and Inventory turns measures.
• Displays top-level categories, like Pantry.
• Displays sub-categories, like Coffee and Biscuits.

You can use the top-level categories to view your overall product category performance, track progress, reach goals, and plan for future investments based on historical sales data.

Each top-level product category displays by default in the report. To view the sub-categories:

1. In the Product category column, click the double arrow icon (Expand) next to a top-level product, for example, Pantry.
2. The product sub-categories will display to the right, for example, Coffee and Biscuits. To further expand, click the double arrow icon next to the sub-category. If you want to hide the sub-categories in the report, click the single arrow (Collapse).

Products without an assigned product category are displayed together in the No product category group.

With product categories, you can track and compare the sales performance of a top-level category and specific sub-categories for deeper insight into your customers’ preferences.

After creating a new product category or changing the category for a product, it can take up to 24 hours for the update to display. Until then, the product's data will remain under its previous product category.

Using the historical data

The historical data in inventory turns reports help you track which top-level categories and sub-categories are selling quickly, and which aren't selling well.

With the historical data, you can:

• Track the cost of goods sold (COGS), gross profit, and GMROI across different time periods.
• Change the date range to compare how the product categories sell during different times of the year. This is especially useful for insights into seasonal item sales trends.

To change the historical data time range for your report:

1. Click the Date range field.
2. Select the Historical tab.
3. Use the settings to specify time periods, dates, select the number of months, and more.
4. Click Apply.
5. Click Search to update the report with your selections.

Using the forecast data

While the historical data helps you understand your past sales, building a forecasted report using a future date range can help you predict how much inventory you’ll likely sell during the selected time period.

To add forecasting data to your report:

1. Click the Date range field.
2. Select the Forecast tab.
3. Select a Forecast period by entering a number and selecting days, weeks, or months.
4. Optionally, check the Factor missed sales into the demand forecast box.
5. Click Apply.
6. Click Search to update the report with your selections.

What's next?