> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vortexiq.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Inventory Turnover Ratio, Microsoft Dynamics 365

> COGS divided by average inventory value. Below 2x annualised signals slow-moving stock. How to read it, why it matters, and how to act on it.

**Metrics type:** [Supporting Metrics](/nerve-centre/overview#metrics-types-explained)  •  **Category:** [Ecommerce Platform](/nerve-centre/connectors#connectors-by-type)

> COGS divided by average inventory value. Below 2x annualised signals slow-moving stock.

## At a glance

|                    |                                                                                  |
| ------------------ | -------------------------------------------------------------------------------- |
| **What it counts** | `Annualised COGS / Average Inventory Value`. Computed off 90-day rolling window. |
| **Tax treatment**  | n/a (ratio).                                                                     |
| **Currency**       | Reporting Currency.                                                              |
| **Time window**    | `90D`                                                                            |
| **Alert trigger**  | `<2 for stocked-products`                                                        |
| **Sentiment key**  | `inv_turnover`                                                                   |
| **Roles**          | owner, finance                                                                   |

## Calculation

Calculated automatically from your Microsoft Dynamics 365 data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

## Worked example

US distributor, annualised COGS $58M, avg inventory $5.4M = 10.7x turnover. Healthy for electronics (benchmark 8-12x). Apparel typically 4-6x; food 12-20x.

## Sibling cards merchants should reference together

| Card                                                                                              | Why pair             |
| ------------------------------------------------------------------------------------------------- | -------------------- |
| [Total COGS](/nerve-centre/kpi-cards/microsoft-dynamics/msd-cogs-total)                           | Numerator.           |
| [Total Inventory Value](/nerve-centre/kpi-cards/microsoft-dynamics/msd-total-inventory-value)     | Denominator.         |
| [Dead Stock Value](/nerve-centre/kpi-cards/microsoft-dynamics/dead-stock-value)                   | What is not turning. |
| [Inventory Carrying Cost](/nerve-centre/kpi-cards/microsoft-dynamics/msd-inventory-carrying-cost) | Cost of slow turn.   |

## Reconciling against the vendor's own dashboard

**Where to look in Business Central:**

> **Power BI > Inventory Performance > Turnover tile**
> Manual: Income Statement COGS / Inventory Valuation report

**Why may differ:**

| Reason               | Direction | Why                   |
| -------------------- | --------- | --------------------- |
| **Window selection** | Either    | 90D rolling vs annual |

**Cross-connector reconciliation:**

No commerce-side counterpart.

## Known limitations / merchant FAQs

**Industry benchmarks?**
Apparel 4-6x. Electronics 8-12x. Food 12-20x. Industrial 6-10x.

**Days of inventory?**
365 / Turnover. So 10.7x = 34 days of inventory on hand.

**Per-Item turnover?**
Available via drill-down.

***

### Tracked live in Vortex IQ Nerve Centre

*Inventory Turnover Ratio* is one of hundreds of KPI pulses Vortex IQ tracks across Microsoft Dynamics 365 and 70+ other ecommerce connectors. Nerve Centre runs the detection layer; Vortex Mind investigates the cause when something moves; Ask Viq lets you interrogate any number in plain English.

[Start for free](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.