Inventory Turnover Calculator

Calculate inventory turnover ratio and days in inventory.

Inventory Turnover Calculator - Free Financial Analysis Tool

Inventory Turnover Calculator

Calculate inventory turnover ratio and days in inventory to analyze inventory efficiency and optimize stock management.

Inventory Information

$

Total cost of goods sold for the period

$
$

Results

Inventory Turnover Ratio

times per period

Days in Inventory

days

Calculation Details

COGS:
Average Inventory:
Time Period:
Daily Sales Rate:

Performance Analysis

Industry Benchmarks

Retail: 6-12 times per year

Grocery: 12-24 times per year

Manufacturing: 4-8 times per year

Automotive: 6-10 times per year

Enter your inventory data to see turnover calculations

Understanding Inventory Turnover

Formula

Inventory Turnover = COGS ÷ Average Inventory

Days in Inventory = Period Days ÷ Turnover Ratio

What It Measures

  • • How efficiently inventory is managed
  • • How quickly inventory is sold
  • • Cash flow effectiveness
  • • Working capital efficiency

Key Insights

  • High Turnover: Efficient inventory management, good sales
  • Low Turnover: Excess inventory, slow sales, tied-up capital
  • Too High: May indicate stockouts, lost sales
  • Seasonal Factors: Consider business seasonality

Improvement Strategies

  • • Optimize purchasing and ordering
  • • Implement just-in-time inventory
  • • Improve demand forecasting
  • • Clear slow-moving inventory
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v1.0.0.758733