Inventory Turnover Calculator

Inventory turnover measures how many times a company sells and replaces its inventory during a period. Higher turnover indicates efficient inventory management - products sell quickly without sitting in warehouses. Lower turnover may indicate overstocking or slow sales.

1. 1

   Step 1

   Enter Cost of Goods Sold (COGS) for the period

2. 2

   Step 2

   Input average inventory value (beginning + ending / 2)

3. 3

   Step 3

   Calculator divides COGS by average inventory

4. 4

   Step 4

   View turnover ratio and days to sell inventory

5. 5

   Step 5

   Compare to industry benchmarks to assess performance

• 1

  Typical turnover varies by industry: Grocery 12-15x, Retail 6-8x, Manufacturing 3-5x

• 2

  Days Sales of Inventory (DSI) = 365 / Turnover Ratio shows average days to sell inventory

• 3

  Compare turnover year-over-year and to industry averages for meaningful analysis

• 4

  Higher isn't always better - too high may indicate stockouts and lost sales

• 5

  Track turnover by product category for actionable insights

• Using Revenue Instead of COGS

• Point-in-Time Inventory

• Ignoring Seasonality

• Cross-Industry Comparisons