5 Common Inventory Management Formulas

What you'll get

Shopify's staff explain five inventory measures with worked examples: turnover, gross margin return on inventory, days of inventory on hand, holding cost and sell-through, which is units sold divided by units received. Shopify sells point-of-sale software that runs these numbers and the examples are retail stores, so if you sell through stores, read sell-through as how much of what you shipped them has sold.