Stock Turn - what is it and how to use it
What is stock turn and how to use it to manage stock levels
Written by Ian Oldrey
Updated at January 3rd, 2023
Table of Contents
Stock turn is a calculated figure that looks at the average amount of stock you have of a product, over a period of time, and the amount sold (used including milling) over that period. Those figures are the extended out to give a predicted stock turn figure for the year. The higher this number the more effectively the stock is working for the business.
Stock Turn Example
If you have a product with an average of 10 in stock and sells 10 a month it would have a stock turn of 12.
If you still had an average of 10 in stock but sold 20 a month the stock turn would be 24
If you dropped the average stock to 5 and still sold 10 a month the stock turn would also be 24
If you increased your average stock to 20 and started selling 20 a month you would have a stock turn of 12
30 day stock turn calculation
Stock turn in Merchanter is based on the sales over last 30 days divided by the average stock held over the last 30 days. This is multiplied up to give a predicted stock turn for the year.
This KPI works on a 30 day calculation to quickly give stock turn fi