Documentation

Turns

This report lets you see how often you “turned over” your inventory last year. In other words, it displays the rate at which you sold through and replenished your entire stock. Compare your turn rate against your industry standard to better understand your shop’s health, or use the turns rate to plan out purchasing to gain maximum profits with minimal investment.

  • Role

    Store Owner/Inventory Manager

  • Job

    Purchasing, Planning

  • Recommended Use

    Monthly

Benefits to You:

Better understand your store’s profitability and health

Each section of your store will have an ideal turn rate, based on whether they are high margin or low margin products. High profit margin products may sell slowly, but offer a better return on investment, while low margin products can still return good profits if you sell through them often enough. By knowing the turn ratio for each of the sections of your store, you can compare this to the industry average (or your own evaluation) to determine whether these products are truly working in your store.

Make your money work for you

By comparing a category’s turn rate to its margin and profit, you can plan how often you should invest in new stock. Carrying the minimum amount of product necessary to satisfy demand will increase your return on investment and free up cash.

Be able to Invest in other areas of your store beyond inventory

By stocking what you know to be profitable, and planning your purchasing to get a better return on this investment, you will have more money available to invest in other areas of your store—like marketing, employees, or that break room popcorn machine you’ve been eyeing.

How it's calculated:

  • By default, the report is organized by top level category.
  • We display the Category's description and its turn rate for the last 365 days.
  • Our turns calculation for Turns last year is units sold last year / Average Inventory Level last year.
  • Other period turns are calculated the same way.

Variations

By Default Vendor
  • Shows the turn rate for the last 365 days, organized by Vendor instead of Top Level Category.
By Manufacturer
  • Shows the turn rate for the last 365 days, organized by Manufacturer instead of Top Level Category.
By Shop
  • For multi-shop owners, Shows the turn rate for your stores compared against each other.
By Vendor & Category
  • See the turn rate by vendor and category combined, along with a visualization showing the turn rate for the 10 Vendor and categories that hold the most cost in your store.

Next Steps:

  • Evaluate your buying strategy and see if any changes in timing or stock need to take place.
  • Re-merchandise your store to increase the turns of underperforming (and perhaps underseen) stock
  • Compare your business turn rates against your industry average, to better evaluate how your inventory is performing.