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Card class: Non-HeroCategory: Ecommerce Platform
COGS divided by average inventory value. Below 2x annualised signals slow-moving stock.

At a glance

Annualised COGS divided by average inventory value. Below 2x signals slow-moving stock.
What it countsAnnualised_COGS / Average_Inventory_Value over 90D window.
CurrencyReporting ledger.
Time window90D
Alert trigger<2 for stocked-products
Sentiment keyinv_turnover
Rolesowner, finance

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.

Worked example

A US Fortune 500 retailer.
Value
Annualised COGS$1,400,000,000
Average inventory$277,000,000
Turnover5.05x
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.

Sibling cards merchants should reference together

CardWhy pair
Total Inventory ValueDenominator.
Total COGSNumerator.
Inventory AgingCause of low turnover.

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.

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.

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.