Inventory Analytics Reports

The Inventory Analytics reports go beyond counting what you have in stock. They analyze how efficiently your inventory is performing by measuring turnover rates, estimating how long items will last before selling out, identifying products that are not selling at all, and ranking items by their sales velocity. These reports are essential for optimizing your inventory investment and improving cash flow.

Accessing These Reports

From the main menu bar, navigate to:

Reports > Inventory > Analytics

You will see four report options:

1. Inventory Turnover
2. Days on Hand
3. Dead Stock
4. Fast / Slow Movers

The first three are presets within the Inventory Analytics Report form. The Fast / Slow Movers report is a preset from the Inventory Movement Report form but is grouped under the Analytics submenu because of its analytical nature.

Permission Required

All four reports require the RPT_VIEW_INV_ANALYTICS permission. Super Admins and Location Admins have this permission by default. Other roles need it explicitly assigned.

Common Filters

• Location — Filter data to a specific location or view all locations
• Date Range — Set the From and To dates to define the analysis period

Inventory Turnover

The Inventory Turnover report calculates how many times each item's stock was completely sold and replaced during the reporting period. A higher turnover rate means the item is selling quickly relative to how much you stock, which is generally a positive indicator.

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Understanding Turnover Rate

The turnover rate tells you how efficiently you are converting inventory into sales. It is calculated as:

Turnover Rate = Sold Qty / ((Beginning Qty + Ending Qty) / 2)

For example, if an item started the month with 40 units, you sold 100 units during the month, and ended with 60 units, the average inventory is 50 and the turnover rate is 2.0. That means you sold through your average stock level two complete times during the period.

The Annualized Turnover column projects this rate to a full year so you can compare items regardless of what date range you selected. If you ran the report for one month and the turnover rate was 2.0, the annualized turnover would be approximately 24.0.

What Is a Good Turnover Rate?

There is no universal benchmark because it varies by industry and product type. However, as general guidance:

• High turnover (12+ annually) — The item is selling quickly. Make sure you are not running out of stock.
• Moderate turnover (4-12 annually) — Healthy range for most retail products.
• Low turnover (below 4 annually) — The item may be overstocked. Consider reducing order quantities or running promotions.
• Zero turnover — No sales during the period. The item may be dead stock.

Tips

• Sort by Turnover Rate ascending to find your slowest-moving items
• Compare turnover rates across categories to understand which product categories perform best
• Use annualized turnover when comparing reports run for different time periods

Days on Hand

The Days on Hand report estimates how many days of sales each item's current stock can support at the current sales rate. This is your early warning system for stock-outs and a key input for cash flow planning.

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Using Days on Hand for Planning

The Days on Hand value tells you approximately how many days your current inventory will last if sales continue at their recent pace. The Estimated Stock-Out Date converts this to an actual calendar date so you can plan accordingly.

For example, if an item has 150 units in stock and sells an average of 10 per day, it has 15 days on hand. If today is March 1st, the estimated stock-out date would be March 16th.

This information is critical for:

• Purchase order timing — If your vendor's lead time is 7 days and an item has 10 days on hand, you need to order now
• Cash flow planning — Items with very high days on hand represent cash tied up in inventory that is not generating revenue
• Seasonal planning — Compare days on hand before and during peak seasons to ensure adequate stock

Tips

• Sort by Days on Hand ascending to see which items will run out first
• Items with very high Days on Hand values (90+ days) may be candidates for markdowns or clearance
• Compare Days on Hand to vendor lead times to determine which items need to be reordered immediately
• The Avg Daily Sales column accounts for zero-sale days, so it reflects the true average, not just days when the item sold

Dead Stock

The Dead Stock report identifies inventory items that have had no sales activity during the reporting period. Dead stock represents capital that is not generating any return and may need to be cleared through markdowns, promotions, returns to vendors, or write-offs.

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Identifying and Managing Dead Stock

Dead stock is a natural part of retail, but minimizing it improves your cash position and frees up shelf and warehouse space. Common strategies include:

• Markdowns — Reduce the price to stimulate sales. Even selling at cost recovers your investment.
• Bundling — Package dead stock items with popular items as a value-add.
• Vendor returns — Some vendors accept returns of unsold merchandise, especially for seasonal items.
• Donations — Donate items for a potential tax benefit (consult your accountant).
• Write-offs — As a last resort, write off the inventory and remove it from your stock.

The Value at Cost column is especially important because it quantifies the financial impact. A small number of dead stock items at high cost may be a bigger concern than many items at low cost.

Tips

• Run this report quarterly to catch dead stock before it sits too long
• Sort by Value at Cost descending to prioritize the highest-value dead stock for action
• Items with a Days Since Last Sale over 180 days are strong candidates for clearance
• Review the Category column to identify whether entire categories are underperforming

Fast / Slow Movers

The Fast / Slow Movers report ranks every item by its sales velocity and assigns a movement category. This report helps you focus your purchasing, merchandising, and promotional efforts on the right products.

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Movement Categories Explained

AccuArk classifies each item into one of four movement categories based on its sales velocity relative to other items:

• Fast — Top-performing items with the highest sales volume. These are your core products that drive the most revenue and should always be in stock.
• Normal — Items selling at an average pace. These form the bulk of your catalog and require standard inventory management.
• Slow — Items with below-average sales volume. Consider whether these items are worth the shelf space and inventory investment, or if they need promotional support.
• Dead — Items with zero or near-zero sales. These items are not contributing to revenue and may need to be discontinued or cleared. Cross-reference with the Dead Stock report for detailed analysis.

Tips

• Use this report to inform purchasing decisions: increase order quantities for Fast movers and reduce or eliminate orders for Dead items
• Compare this report across locations to see if an item that is slow at one store is fast at another, which may justify a transfer
• Cross-reference Fast movers with the Inventory On-Hand & Valuation Reports to ensure your bestsellers have adequate stock
• Share this report with your merchandising team so they can give premium placement to Fast movers
• Combine insights from this report with the Inventory Movement & Control Reports to understand the full story behind each item's performance

Putting It All Together

The four analytics reports work best when used together as part of a regular inventory review:

1. Start with Inventory Turnover to get the big picture of how efficiently your inventory is performing
2. Check Days on Hand to identify items that need to be reordered soon or that have excessive stock
3. Review Dead Stock to find items that need clearance action
4. Use Fast / Slow Movers to rank your entire catalog and adjust your purchasing and merchandising strategy

Running these reports monthly gives you a continuous feedback loop that keeps your inventory lean, your cash flowing, and your shelves stocked with products that actually sell.

Related Articles

• Inventory On-Hand & Valuation Reports — Current stock levels, location breakdown, and valuation
• Inventory Movement & Control Reports — Detailed movement history and adjustment tracking
• Top & Bottom Performer Reports — Revenue-based item rankings from the sales perspective