WTF? / Part 5 / 5.9
What is inventory aging?

Inventory aging

THE 30-SECOND ANSWER

Aging groups your unsold inventory by how long it has been in the building, typically 0–30, 31–60, 61–90 and 90+ days.

In plain English

Inventory does not improve with age. Older units cost you space, cash and usually resale value.

The report only works if it is attached to a decision: an automatic markdown, a channel change, or a clearance rule at a set age.

Example

22% of inventory value sitting past 90 days signals a buying or pricing problem, not a sales problem.

Why it matters

Aged stock is the most common hidden loss on a resale balance sheet.

COMMON MISTAKEHolding for the original price because of what was paid. The cost is already spent.
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