COGS divided by average inventory value. Below 2x annualised signals slow-moving stock.
At a glance
Annualised inventory turnover ratio: COGS ÷ average inventory value. Below 2x signals slow-moving stock; above 8x signals stockout risk.
| What it counts | (COGS for trailing 90 days × 4) ÷ Avg(Inventory Value, 90D). Annualised so the number reads “turns per year”. |
| Tax treatment | n/a. |
| Currency | OneWorld: reporting currency. |
| Subsidiary scope | Respects dashboard filter. |
| Time window | 90D (rolling) |
| Alert trigger | <2 for stocked-products, sentiment inv_turnover |
| Roles | owner, finance |
Calculation
Calculated automatically from your NetSuite data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.Worked example
A US wholesale apparel distributor on NetSuite. 90-day window 14 Jan 26 to 12 Apr 26.| Component | Value (USD) |
|---|---|
| 90-day COGS | $14,400,000 |
| Annualised COGS (×4) | $57,600,000 |
| Avg Inventory Value (90D) | $28,200,000 |
| Inventory Turnover (this card) | 2.04x per year |
- 2.04x is below the alert threshold of 2.0x? Right at the line. Within a tick of firing.
- 2x means inventory turns once every 6 months on average. For wholesale apparel, healthy is 4-6x (8-12 weeks). 2x = stagnation.
- The remediation is to reduce inventory (faster), not increase sales (slower lever). Liquidate dead stock, tighten reorder discipline.
- Per-SKU turnover varies wildly. Bestsellers turn 12-20x; long-tail SKUs turn 0.5-1x. The headline averages them. Drill via Margin by SKU and Top SKUs Value to find the slow-movers.
- Industry benchmarks vary widely. Apparel 4-6x, electronics 6-10x, food <30 days = 12+x, slow-moving capital goods 1-2x.
Sibling cards merchants should reference together
| Card | Why pair it with Inventory Turnover |
|---|---|
| Total Inventory Value | The denominator. |
| COGS Total | The numerator. |
| Inventory Aging | Old stock drags turnover. |
| Dead Stock Value | Worst offenders. |
| Inventory Carrying Cost | The financial impact of slow turnover. |
| Margin by SKU | Slow + low-margin = liquidate. |
Reconciling against the vendor’s own dashboard
Where to look in NetSuite: NetSuite does not surface Inventory Turnover natively. The card derives from COGS (Income Statement) and Inventory Valuation (Balance Sheet). Most accounts compute on demand. Why our number may legitimately differ:| Reason | Direction | Why |
|---|---|---|
| Window choice | Either | Some Controllers use 12-month rolling; card uses 90D × 4 annualisation. The 12-month is smoother but slower to react. |
| Average inventory method | Either | Beginning + ending ÷ 2 vs daily-average. Card uses daily-average for accuracy. |
| Subsidiary scope | Either |