Table of Content

What is Understanding Inventory Metrics

Inventory metrics calculate the amount of stock a business has at any specific time, allowing the tracking of inventory levels and measurement of inventory turnover.

Why Inventory Metrics Matter

Inventory metrics are crucial because they help businesses optimize cash flow and profitability by effectively managing stock levels.

Considerations When Using Inventory Metrics

When analyzing inventory metrics, it's important to consider factors such as beginning inventory, purchases, cost of goods sold (COGS), and ending inventory.

Optimize Your Inventory Metrics

To get the most value out of inventory metrics, businesses should strive to accurately track their inventory levels and costs, enabling better forecasting and decision-making regarding stock management.