Inventory Turnover Calculator

See how many times your stock sells through in a period and how many days it sits in the warehouse.

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How to use the Inventory Turnover Calculator

Enter cost of goods sold for the period from your profit and loss statement.
Enter inventory value at the start and end of the period.
Enter the number of days in the period (365 for a year, 90 for a quarter).

Formula used

Average inventory = (Opening + Closing) ÷ 2

Inventory turnover = COGS ÷ Average inventory

Days inventory outstanding = Days in period ÷ Turnover

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Inventory Turnover Calculator — FAQs

What is a good inventory turnover ratio?▾

It varies by industry: grocery and FMCG retailers turn stock 10–20 times a year, general retail 4–8, and manufacturers of engineered goods 3–6. Compare with your own history and peers.

Should I use sales or COGS?▾

Use cost of goods sold, because inventory is valued at cost. Using sales overstates turnover.

How can I improve inventory turnover?▾

Cut slow-moving items, order smaller quantities more often, improve demand forecasts and negotiate shorter supplier lead times.

What does low turnover indicate?▾

Overstocking, obsolete items or weak sales — cash is tied up in stock that is not moving.

How to use the Inventory Turnover Calculator

Formula used

Inventory Turnover Calculator — FAQs

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