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Metrics type: Supporting Metrics • Category: Ecommerce Platform
COGS divided by average inventory value. Below 2x annualised signals slow-moving stock.

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At a glance

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

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Calculation

Calculated automatically from your Oracle ERP Cloud data. See the At a glance summary above for what the metric tracks and the worked example below for a typical reading.

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Worked example

A US Fortune 500 retailer. Five things to notice:
  1. 5x is healthy for retail. Above the 2x alert.
  2. B2B distribution targets 4-8x.
  3. Falling turnover = aging inventory.
  4. Pair with Inventory Aging.
  5. Per-category drill reveals which lines are slow.

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Sibling cards merchants should reference together

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Reconciling against the vendor’s own dashboard

Where to look in Oracle ERP Cloud:
OTBI → Inventory + Cost Management Real Time custom analysis
Cross-connector reconciliation: Internal Oracle metric.

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Known limitations / merchant FAQs

Healthy by industry? Fashion 4-6x, electronics 6-12x, B2B distribution 4-8x, grocery 12-20x. Multi-BU? Yes via filter.

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Tracked live in Vortex IQ Nerve Centre

Inventory Turnover Ratio is one of hundreds of KPI pulses Vortex IQ tracks across Oracle ERP Cloud 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 or book a demo to see this metric running on your own data.