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Inventory Turnover Rate

Also known as: Stock Turnover, Inventory Turns

EfficiencykpiLogistics & Supply Chain

Measures how often inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.

Business Use Case

Executives use this KPI to optimize inventory levels, reduce holding costs, and improve cash flow by identifying slow-moving products.

Business Criticality

High

Journey / Navigation Area

Generic

Owning Function

Data Architecture Team

Scope

Global

Formula

(Cost of Goods Sold / Average Inventory)

Calculation Notes

Exclude obsolete or non-moving inventory items; ensure consistent valuation method for inventory.

Technical Details

Measure Typerate
Aggregation WindowTime based - Monthly

Events

SQL Queries

Google Analytics 4 (BigQuery)
-- ==========================================
-- 1. GOOGLE BIGQUERY SQL
-- ==========================================
SELECT product_id,
       SUM(sales_quantity) / NULLIF(SUM(average_inventory), 0) AS inventory_turnover_rate
FROM `your-project.erp.warehouse_logs`
WHERE event_date BETWEEN '2023-01-01' AND '2023-12-31'
GROUP BY product_id
Adobe Experience Platform (AEP Query Service)
-- ==========================================
-- 2. ADOBE AEP QUERY SERVICE SQL
-- ==========================================
SELECT product_id,
       SUM(sales_quantity) / NULLIF(SUM(average_inventory), 0) AS inventory_turnover_rate
FROM aep_backend_dataset.warehouse_logs
WHERE event_date BETWEEN '2023-01-01' AND '2023-12-31'
GROUP BY product_id

Source Data

ERP

Dependencies

[ "Cost of Goods Sold", "Average Inventory" ]

Report Attributes

Product Category Region Time Period

Recommended Reporting Views

Views
Executive Summary DashboardOperations Efficiency Dashboard

Segment Eligibility

true

Governance

Data Sensitivityinternal

Governance

Created bydevyendarm
Created on8/19/2026
Last modified bydevyendarm
StatusPUBLISHED

GitHub

View File on GitHubcatalog/kpis/inventory-turnover-rate.yml

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