> ## 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, Oracle ERP Cloud

> 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

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

|                    |                                                              |
| ------------------ | ------------------------------------------------------------ |
| **What it counts** | `Annualised_COGS / Average_Inventory_Value` over 90D window. |
| **Currency**       | Reporting ledger.                                            |
| **Time window**    | `90D`                                                        |
| **Alert trigger**  | `<2 for stocked-products`                                    |
| **Sentiment key**  | `inv_turnover`                                               |
| **Roles**          | owner, 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   |
| **Turnover**      | **5.05x**       |

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](/nerve-centre/kpi-cards/oracle-erp/inventory-aging)**.
5. **Per-category** drill reveals which lines are slow.

## Sibling cards merchants should reference together

| Card                                                                                   | Why pair               |
| -------------------------------------------------------------------------------------- | ---------------------- |
| [Total Inventory Value](/nerve-centre/kpi-cards/oracle-erp/oerp-total-inventory-value) | Denominator.           |
| [Total COGS](/nerve-centre/kpi-cards/oracle-erp/oerp-cogs-total)                       | Numerator.             |
| [Inventory Aging](/nerve-centre/kpi-cards/oracle-erp/inventory-aging)                  | Cause 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](https://app.vortexiq.ai/login) or [book a demo](https://www.vortexiq.ai/contact-us) to see this metric running on your own data.