What is Inventory Turns?
Inventory turns is a measurement of how many times your company's inventory was sold during a given time period.
Inventory turns is calculated by dividing the value of your inventory at the beginning of the time period by the value of your inventory at the end of the time period.
If your company's inventory turns are low, it means that your company is selling its inventory very slowly. If your company's inventory turns are high, it means that your company is selling its inventory very quickly.
Inventory turns are a great KPI to look at when determining the health of your company. If your company has low inventory turns, it might be a sign that your company is having trouble selling its products and services.
If your company has high inventory turns, it might be a sign that your company is selling its products and services too quickly.
How do you calculate Inventory Turns in QuickBooks?
It can be difficult to calculate Inventory Turns directly inside of QuickBooks; that's where Causal comes in.
Causal is a modelling tool which lets you build models on top of your QuickBooks data. You simply connect Causal to your QuickBooks account, and then you can build formulae in Causal to calculate your Inventory Turns.
What is Causal?
Causal lets you build models effortlessly and share them with interactive, visual dashboards that everyone will understand.
In Causal, you build your models out of variables, which you can then link together in simple plain-English formulae to calculate metrics like Inventory Turns. This makes your models easy to understand and quick to build, so you can spend minutes, not days, on your models.
When you're done, you can share the link to your model with stakeholders. They'll be able to view your model's outputs in a visual dashboard, rather than a jumble of tabs and complex formulae. The dashboards are interactive, letting viewers tweak your assumptions to see how they affect the model's outputs.
Causal lets you add visuals in a single click, letting you plot out graphs and distributions for metrics like Inventory Turns.