Sell-Through & Weeks of Cover KPI

Enter your stock and sales numbers for any period. The calculator returns the four KPIs that tell you whether your inventory is moving fast enough, or sitting too long.

Period Data

Example: 500 units on hand at the start of the period.

Example: 200 units received from purchases or transfers during the period.

Example: 320 units shipped or sold through during the period.

Example: 4 weeks (one month). Use fractions for shorter periods.

Current Position

Example: 380 units physically in stock right now.

Example cost per unit for extended value analysis. Leave blank to skip.

Results

Sell-Through Rate

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Stock-to-Sales Ratio

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Weeks of Cover

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Annualised Inventory Turns

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Why These Four KPIs Matter Together

No single number tells the whole story. Sell-through rate shows what proportion of available stock moved. Stock-to-sales ratio shows how much inventory you hold relative to what you sell. Weeks of cover translates that ratio into time. Annualised turns annualises your sales velocity so you can compare across periods of different lengths.

Used together, they answer the two questions that matter: are you selling what you have, and are you holding too much or too little?

Sell-Through Rate

Sell-through rate = units sold ÷ (opening stock + units received). It tells you the percentage of available inventory that actually moved during the period. A rate of 70% means 7 out of every 10 units available were sold.

When to act: Below 50% over a standard retail period usually signals overstock, weak demand, or a pricing problem. Above 90% may mean you are understocked and leaving sales on the table. The target depends on your category — grocery and fast-moving goods run higher; durables run lower.

Stock-to-Sales Ratio

Stock-to-sales ratio = current on-hand ÷ units sold in the period. It measures how many units of stock you carry for every unit you sell. A ratio of 1.2 means you hold 1.2 units in stock for every unit sold — a tight position. A ratio of 4.0 means you hold four times what you sold — likely excess.

When to act: A rising ratio with flat or falling sales is the earliest warning sign of accumulating dead stock. If the ratio climbs for two consecutive periods without a seasonal explanation, review slow-movers and consider promotions or transfers.

Weeks of Cover

Weeks of cover = current on-hand ÷ (units sold ÷ period weeks). It answers: if sales continue at the current rate, how many weeks until stock runs out? This is the metric most buyers use when placing replenishment orders.

When to act: Below 2 weeks for non-perishable goods usually trigger a reorder, assuming normal lead time. Above 12 weeks for slow-movers often means capital is tied up unnecessarily. Perishable goods need much shorter horizons — check shelf life, not just sales velocity.

Annualised Inventory Turns

Annualised turns = (units sold ÷ period weeks × 52) ÷ average stock. It tells you how many times per year your average inventory position sells out and is replaced. This is the standard metric for comparing performance against industry benchmarks.

When to act: Turns below your category average suggest overstock or slow demand. Turns significantly above average may indicate capital efficiency but also risk of stock-outs. Use turns alongside sell-through rate — high turns with low sell-through can mean you are running very lean, not necessarily performing well.

Frequently Asked Questions

What is a good sell-through rate? +
It depends on your category. Grocery and fast-moving consumer goods often target 80-90% per period. Durables and specialty retail may be happy with 40-60%. The key is consistency: if your rate drops month over month without a seasonal explanation, you are likely overstocked or pricing is off.
What is the difference between sell-through rate and inventory turns? +
Sell-through rate is a period ratio: units sold divided by units available. Inventory turns annualises that ratio — it tells you how many times per year your average stock position sells out. A 60% sell-through over six weeks implies roughly 5 turns per year if that pace continues.
How is weeks of cover different from days of cover? +
They are the same calculation in different units. Weeks of cover = on-hand stock divided by average weekly sales. Days of cover multiplies by 7. Use whichever unit matches how your team plans replenishment.
Should I use opening stock alone or opening plus receipts? +
Always use opening plus receipts (or opening plus receipts minus returns). Sell-through measures how much of everything you had available actually moved. If you ignored receipts you would underestimate your rate and potentially order more than you need.
How do I handle returns in the calculation? +
Net units sold is what matters. If you sold 100 units and received 12 returns, use 88 in the sold figure. Returns reduce both your numerator and your closing on-hand, so netting them gives the cleanest picture of genuine demand.
Can I use this for a single SKU or only for categories? +
Both. The calculator works at any aggregation level — a single SKU, a category, or your entire warehouse. The interpretation guidelines in each result card still apply, but remember that aggregation smooths out extremes. A category may look healthy while an individual SKU is dead stock.

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