Inventory Turnover Calculator
Calculate inventory turnover ratio and days to sell from cost of goods sold and average inventory. Assess inventory management efficiency.
How to Use the Inventory Turnover Calculator
- Enter cost of goods sold (COGS) for the period.
- Enter average inventory value.
- Click Calculate to see turnover ratio and days to sell.
Cas d'utilisation
- •Measuring inventory management efficiency.
- •Identifying slow-moving or excess inventory.
- •Comparing inventory performance across product categories.
- •Benchmarking against industry inventory turnover norms.
Formule
Turnover ratio = COGS / average inventory. Days to sell = 365 / turnover ratio.
Questions fréquemment posées
What is inventory turnover?
Inventory turnover measures how many times a company sells and replaces its inventory over a period, usually one year.
What is a good inventory turnover ratio?
It varies by industry. Grocery retail: 20–30x. Manufacturing: 4–8x. Luxury goods: 2–4x. Higher turnover generally indicates efficient inventory management.
What does days to sell mean?
Days to sell (DIO) is the average number of days it takes to convert inventory into sales. Lower DIO means faster inventory movement.