The Inventory Turnover Report is a powerful tool that helps you understand how quickly your products are selling. If you're tracking inventory in ConnectStock, this report gives you deep, accurate insights into your inventory performance.
How Inventory Turnover Is Calculated
First, select a date range (for example, Last Year).
We track each item from the moment it is purchased (based on the bill date) until it is sold. Because of this, the turnover rate shown in the report is a true, data-based calculation — not a rough estimate.
Formula
Turnover Rate = Total Sales Qty ÷ Average Inventory
Average Inventory = Sum of daily inventory values (only for days the item was in stock) ÷ Number of days the item was in stock
This method is much more accurate than simply averaging beginning and ending inventory, which many systems rely on.
Additional Metrics Included
Days in Stock: If an item is out of stock, we track it—and exclude those days from the average.
Score: A unique performance score we calculate by multiplying Turnover Rate × ROI.
The higher the score, the better the item is performing.
This Score is a game-changer. It tells you which products are truly driving value, helping you prioritize which items to restock, promote, or phase out.
Make the Report Work for You
You can:
Add, remove or rearrange columns (e.g., Sales Quantity, Profit)
Filter items by criteria like minimum sales quantity
Export the report for further analysis or sharing
We recommend reviewing your turnover using a full-year date range for a more reliable picture of product performance.
Important Notes
This report only works from the date you started tracking inventory in ConnectStock.
Inventory tracking begins on the date you enter the bill for the item.
Sales in this report are based on the shipped date. When comparing it to the standard P&L report, be sure to use the shipped date and the same cost type.
Why It Matters
The Inventory Turnover Report helps you:
Avoid overstocking or understocking
Make smarter restocking decisions
Improve cash flow by focusing on fast-moving, high-ROI items
In short, it's a game-changing report that turns your inventory data into a powerful decision-making tool.