Inventory Turnover Calculator
Find how many times you sell through your inventory in a period, and how many days stock sits on the shelf.
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Times per Period
- Average inventory
- Days of inventory
- Weeks of supply
- Inventory Tied Up per Turn
Periods
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How to Calculate Inventory Turnover
Inventory turnover shows how many times you sell and replace your stock in a period. Higher turnover means less cash tied up and less risk of stale stock, though too high can mean stockouts.
Turnover = COGS ÷ average inventory Average inventory = (beginning + ending) ÷ 2
Days of inventory = days in period ÷ turnover
Worked Example
Tips
Compare turnover with others in your industry: grocers turn inventory far faster than furniture stores. Use cost, not retail price, for inventory values so they match COGS.