Inventory Turnover Calculator

Your details

Forward solves the ratio. Reverse finds the average inventory a target turnover allows.
Turnover should use COGS. If you only have sales, add your gross margin and we convert it to a cost basis.
The total cost of the inventory you sold over the period, not its selling price.
Average inventory is usually (beginning + ending) ÷ 2, all valued at cost.
Inventory valued at cost. Use the period average, not a single day.
Use 365 for a year, 90 or 91 for a quarter, 30 for a month. Some firms use 360.
days
Currency
Inventory turnoverHealthy turnover
6

Times stock sold per period

Days inventory outstanding60.8days
Weeks of supply8.7weeks
Average inventory used$100,000
Cost basis used$600,000
6 ×
Slow<2Below average2-4Healthy4-8Fast8-12Very fast12+

You turn your inventory 6× a period, about every 61 days.

  • Higher turnover ties up less cash in stock, but too high can mean lost sales from stockouts.
  • Healthy ranges vary widely by industry: grocery turns dozens of times a year, while jewelry may turn once or twice.
  • Use cost of goods sold, not revenue, so the numerator matches the cost basis of average inventory.

Next stepCompare this figure against the typical turnover for your specific industry before judging it.

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