How the Inventory Turnover Calculator works
Turnover shows how efficiently cash moves through inventory. High turnover means less storage cost and faster compounding of profits.
Formula
- Turnover = COGS ÷ Average inventory value
- Days to sell = Period days ÷ Turnover
Example
5 turns a year, 73 days per turn.
Cost of goods sold in the period: 60000Average inventory value (at cost): 12000Period length (days): 365
Frequently asked questions
Average inventory value?
(Opening + closing inventory at cost) ÷ 2 for the period.