How to measure inventory turnover and GMROI
Web
Updated Aug 2026
Stock that turns slowly is cash sitting on a shelf. RushFlow’s Inventory Turnover & GMROI report shows how fast your stock sells — turnover ratio and days of stock — and your return on inventory investment (GMROI), per product and overall, so you can free up trapped cash and back your winners.
Step by step
- Open the reportWeb: Products → Inventory Turnover. Pick a From and To date (defaults to this year) and Run.
- Read the metricsEach product shows units sold, on hand, COGS, inventory value, turnover (×), days of stock and GMROI. Summary cards give the overall picture and count slow movers.
- ActTurn over your slow movers (turnover below 1×) with promotions or by cutting reorder quantities; put cash behind high-GMROI lines.
What the numbers mean
- Turnover = cost of goods sold ÷ inventory value — how many times you sold through your stock in the period.
- Days = period length ÷ turnover — roughly how long stock sits before selling.
- GMROI = gross margin ÷ inventory value — the profit each unit of inventory investment returns.
Frequently asked questions
Can I see my inventory turnover?
Yes. The Inventory Turnover & GMROI report shows turnover ratio, days of stock and return on inventory investment per product and overall, flagging slow movers.
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