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Inventory Turnover Calculator

Measure how many times your business has sold and replaced inventory during a specific period.

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Fill in the fields above and click Calculate to see your results.

How to use

Measure how many times your business has sold and replaced inventory during a specific period.

How it's calculated

Inventory Turnover Ratio

cogs / ((beginning_inventory + ending_inventory) / 2)

Days to Sell Inventory

365 / (cogs / ((beginning_inventory + ending_inventory) / 2))

Examples

Online Shoe Store

  • Cost of Goods Sold (COGS):500,000,000
  • Ending Inventory:60,000,000
  • Beginning Inventory:40,000,000

Industry Benchmarks

Metric Typical Range
A ratio of 4-6 is typical for many retail industries. 6

Frequently Asked Questions

What is a good inventory turnover ratio?

A good ratio is usually between 4 and 6. Too high might mean lost sales due to stockouts; too low means excess inventory.