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# How is the sell through rate calculated in the app?

The sell-through rate is the percentage of inventory sold within a specific period, showing how quickly products are moving. It’s calculated by dividing units sold by total units received in the given period.

## Terms and formula

* **SKU**: Stock Keeping Unit, a unique identifier for your product variants.

* **Beginning quantity**: The initial quantity of a product in the inventory at the commencement of a specified historical period.

* **Ending quantity**: The concluding quantity of a specific product variant in the inventory at the end of a historical period.

* **Net units sold**: The actual units sold of products in the historical period.

```
[Units Sold] - [Units Returned]
```

* **Units returned**: The units returned of products in the historical period.

* **Units received & adjusted**: The units received & manually adjusted of products in the historical period.

```
[Ending Quantity] - ( [Beginning Quantity] - [Net Units Sold] )
```

* **Sell-through rate**: The mean quantity of units deducted or sold daily for a specific product variant over a historical period.

```
[Net Units Sold] / ( [Beginning Quantity] + [Units Rereceived & Adjusted] ) x 100%
```