Calculate your Inventory Turnover Ratio and Days Sales of Inventory (DSI) to prevent dead stock and free up working capital.
High turnover means rapid sales and efficient capital usage. Low turnover indicates excess inventory, tied-up cash, and risk of stock spoilage or shrinkage.
Turnover Ratio = Annual COGS / Average Inventory
DSI = 365 / Turnover RatioBiznessBook tracks slow-moving SKUs and sends low-stock / excess-stock alerts automatically.
For most retail stores, a turnover ratio between 4 and 8 is healthy, meaning inventory turns over every 45 to 90 days.