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.