Inventory turnover
The Analiz → Stok Devir Hızı page answers the question “how many times a year is stock completely replaced?”
Turnover and days of inventory
Section titled “Turnover and days of inventory”- Turnover = annual cost of goods sold ÷ current stock value.
- Days of inventory = 365 ÷ turnover; how many days the current stock will last.
Movement classes
Section titled “Movement classes”| Class | Turnover | Meaning |
|---|---|---|
| Fast-moving | 6× and above | Stock is replaced every two months or more often |
| Normal | 3× – 6× | Every two to four months |
| Slow-moving | 1× – 3× | Between four months and a year |
| Dead stock | Below 1× | Takes more than a year to sell, or does not sell at all |
Ideal stock
Section titled “Ideal stock”The average stock the plan implies: safety stock plus half the cycle quantity. The page’s total turnover is not the average of product turnovers but total cost of goods sold divided by total stock value. Example and calculator: How to calculate inventory turnover. The page compares your current stock with the ideal; a positive difference means stock is above the plan average.
This difference is larger than the excess stock on Stock financial analysis. Reaching the plan average takes time: if the plan is followed, stock runs down towards it between orders. Excess stock is the part in warehouses above the target level (reorder point + order quantity) and can be run down right away without lowering the service level. The page shows both on separate lines.
A chart shows how turnover has changed across recent forecast runs.