Calcvers
Inventory Turnover Calculator
Costs & Operations
Generated
September 24, 2026
Inventory turnover
5.7×
$200,000 of goods sold on $35,000 average stock
Your inputs
- Currency
- USD ($)
- Cost of goods sold
- 200,000
- Beginning inventory
- 30,000
- Ending inventory
- 40,000
Breakdown
- Days in inventory
- 64
- Average inventory
- $35,000
- Cost of goods sold
- $200,000
Annual flow
| Item | Value |
|---|---|
| Avg inventory | $35,000 |
| Goods sold | $200,000 |
What this means
Inventory turnover measures how many times, on average, your stock is sold and replaced over the year. It's calculated as cost of goods sold ÷ average inventory. Dividing 365 by the ratio gives days in inventory — how long a typical item sits before selling. High turnover means stock moves fast and cash isn't tied up; low turnover signals slow-moving or excess stock.
Recommendations
- Compare your turnover against industry norms — groceries turn over fast, while specialty retail and equipment are slower.
- A falling ratio usually means overstocking or waning demand; investigate slow movers before they become write-offs.
- Improve turnover with tighter reorder points, better forecasting, or discounts on slow lines.
Watch out
- Turnover that's too high can mean understocking and lost sales — stock-outs and rush orders have their own costs.