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What Is the Difference Between Inventory Turnover Ratio and Sellable Velocity in the Product Performance Dashboard?

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Written by Treez Support
Updated over a week ago

Please Note: This article pertains to functionality in the Latest Version of Treez.

Question:

What is the difference between Inventory Turnover Ratio and Sellable Velocity in the Product Performance Dashboard?

Answer:

The Inventory Turnover Ratio is when inventory is stocked sold and replenished.

Example:
An inventory turnover ratio of 1.5 means that a company has sold its entire inventory 1.5 times in a given period of time. This indicates that the company is selling its inventory at a good rate and that it is managing its inventory efficiently.

Sellable Velocity refers to how many units are sold per SKU per day when the inventory is in a sellable location.

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