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PHP Inventory Turnover Ratio Analysis Function Tutorial for Inventory Management System

M66 2025-07-10

How to Write PHP Code for Inventory Turnover Ratio Analysis in an Inventory Management System

Inventory turnover ratio refers to the number of times inventory is sold and replaced during a specific period. It is a key indicator for assessing the efficiency of inventory management in a business. By implementing inventory turnover ratio analysis in an inventory management system, businesses can better understand their inventory operation, take timely corrective actions, and improve the inventory turnover ratio, which is crucial for enhancing profitability.

This article uses PHP as the development language to demonstrate how to write PHP code for inventory turnover ratio analysis in an inventory management system. Below is a detailed example of the implementation process.

Creating the Product Information Table

First, we need to create a database table to store product information, for example, a table named products. The table structure is as follows:

CREATE TABLE `products` (
  `id` INT(11) NOT NULL AUTO_INCREMENT,
  `name` VARCHAR(255) NOT NULL,
  `price` DECIMAL(10,2) NOT NULL,
  `quantity` INT(11) NOT NULL,
  `sold_quantity` INT(11) NOT NULL,
  PRIMARY KEY (`id`)
) ENGINE=InnoDB DEFAULT CHARSET=utf8;

Connecting to the Database and Querying Inventory Data

Next, we will connect to the database in the PHP code and query the data needed for inventory turnover ratio analysis.

<?php
$servername = "localhost";
$username = "username";
$password = "password";
$dbname = "database";

// Create connection
$conn = new mysqli($servername, $username, $password, $dbname);

// Check connection
if ($conn->connect_error) {
    die("Connection failed: " . $conn->connect_error);
}

// Query inventory data
$sql = "SELECT SUM(quantity) AS total_quantity, SUM(sold_quantity) AS total_sold_quantity FROM products";
$result = $conn->query($sql);

if ($result->num_rows > 0) {
    while ($row = $result->fetch_assoc()) {
        $totalQuantity = $row["total_quantity"];
        $totalSoldQuantity = $row["total_sold_quantity"];
    }
} else {
    echo "No data";
}

// Calculate inventory turnover ratio
$inventoryTurnoverRatio = $totalSoldQuantity / $totalQuantity;

// Output inventory turnover ratio
echo "Inventory Turnover Ratio: " . $inventoryTurnoverRatio;

// Close connection
$conn->close();
?>

Calculating Inventory Turnover Ratio

With the above code, we can retrieve the total quantity of inventory and the total quantity sold, then calculate the inventory turnover ratio. Finally, the result is outputted for the user.

Extending the Functionality

In real applications, you can expand the code as needed. For instance, you can analyze inventory turnover ratios by product category or time period, and even display the results in charts, enhancing user experience and data visualization.

Conclusion

This article demonstrated how to write PHP code for inventory turnover ratio analysis in an inventory management system. Through this functionality, businesses can better optimize inventory management, improve operational efficiency, and boost product sales capability. We hope this article helps you understand how to implement inventory turnover ratio analysis.

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