Financial models
Inventory Analysis Analysis
Which few items carry most of your inventory value, and which are dead weight.
Works with inventory exports from QuickBooks, Shopify, Square, Lightspeed or a stock sheet: an item, the quantity on hand and its cost. Add units sold or cost of goods sold to rank by what moves.
Inventory Analysis: Which stock matters most?
The few items that carry most of your stock value, and the dead weight. You need a stock list with quantity and cost. Drop it in and the answer appears in your browser with no account, no setup and nothing uploaded. Download the result as a PDF report or an Excel workbook to send on.
Related models
About this model
Upload a stock list with the quantity on hand and unit cost of each item. Items are ranked by value: what you use in a year (units sold or used × cost) if the file has it, otherwise the value on hand. Running down the list, the items that make up the first 80% of value are class A, up to 95% class B, and the rest class C; both cut-offs can be changed. A small share of items usually carries most of the value, and those deserve the closest counts and reorder attention. With usage you also get turnover, days on hand and dead stock.
How to run it
- Export your inventory with item, quantity on hand and unit cost; add units sold or cost of goods sold if you have them.
- Upload it and check the columns used and the class cut-offs.
- Filter by class, then download the workbook with value, running share and class as formulas.
Frequently asked questions
What is ABC analysis in inventory?
Ranking items by value and splitting them into three classes: A, the few items that make up about 80% of value; B, the next 15%; and C, the many items that make up the last 5%. It focuses counting, ordering and negotiating time where the money is.
Should I rank by usage or by value on hand?
By annual usage value (units used or sold × unit cost) when you have it: that measures how much money flows through each item. Value on hand is a fallback that shows where cash is sitting today.
How are turnover and days on hand calculated?
Turnover is usage value ÷ value on hand; days on hand is 365 ÷ turnover. An item that turns 6 times a year sits about 61 days.
What is dead stock?
Items with stock on hand and no sales or usage in the period. They tie up cash and space; consider discounting, bundling or returning them.
