Measure how efficiently you're moving inventory, in turns per year and in days on the shelf.
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Enter your inventory figures, then click Calculate to see results.
| Industry | Typical Turnover | Vs. Your Ratio |
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Benchmarks are illustrative industry averages and vary by business model, region, and product type — use as a rough reference only.
The Inventory Turnover Calculator measures how efficiently a business converts inventory into sales, expressed both as a turnover ratio (times per year) and as Days Inventory Outstanding (DIO, the average number of days stock sits before selling). It's built for retailers, wholesalers, and manufacturers tracking inventory efficiency, and for finance teams assessing how much cash is tied up in stock.
You enter your annual Cost of Goods Sold (COGS) along with beginning and ending inventory value for the period. The calculator averages beginning and ending inventory to smooth out timing effects, then divides annual COGS by that average inventory to get the turnover ratio. Dividing 365 days by the turnover ratio converts it into Days Inventory Outstanding — a more intuitive figure showing roughly how long inventory sits before being sold. The results are compared against illustrative benchmarks for several common industries.
Inventory turnover is a core efficiency metric: too low, and cash is tied up in unsold stock that could otherwise fund operations or growth; too high, and you risk stockouts and lost sales from carrying too little inventory. Tracking turnover over time also helps flag slow-moving or obsolete stock before it becomes a write-off, and feeds directly into cash flow and working capital planning.
Turnover converts to Days Inventory Outstanding for an intuitive read.
The mean of beginning and ending inventory smooths out timing swings within the period being measured.
Shows how many times inventory is sold and replaced over the year — higher generally means more efficient inventory management.
Converts the ratio into an average number of days stock sits before selling, which is often easier to act on operationally.
Common questions about inventory turnover calculations
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