📊 Inventory Turnover Calculator
Measure how efficiently your business manages inventory
Input Values
Results
Inventory Turnover Ratio
0.00
Average Inventory:
$0.00
Days in Inventory:
0 days
Inventory Velocity:
0.00%
Understanding Inventory Turnover
🎯 What is Inventory Turnover?
Measures how many times a company sells and replaces its inventory over a specific period, indicating efficiency in inventory management.
📊 Formula
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
Average Inventory = (Beginning + Ending) ÷ 2
⚡ High Turnover
Indicates strong sales, efficient inventory management, and good demand forecasting. However, it may also suggest stock shortages.
🐌 Low Turnover
May indicate weak sales, excess inventory, or poor demand forecasting. Could tie up capital and increase storage costs.