Inventory Turnover Calculator
Calculate inventory turnover ratio and days sales of inventory for working capital optimization
Inventory Data
Enter your inventory and sales information
Total cost of goods sold during the period
365 for annual, 90 for quarterly
Turnover Analysis
Inventory Turnover Ratio
0.00x
Healthy turnover rate
Days Sales in Inventory
0 days
Avg Inventory
$0
Daily Inventory Velocity
$0/day
Average daily cost of goods sold
Time-Based Metrics
Times Stock Turns (Annual)0.0x
Months Supply of Inventory0.0 months
Weeks Supply of Inventory0.0 weeks
Capital Efficiency0%
Understanding Inventory Turnover
Turnover Ratio: Measures how many times inventory is sold and replaced during a period. Higher ratios indicate efficient inventory management.
Days Sales in Inventory: Average number of days it takes to sell through current inventory. Lower is generally better.
Industry Benchmarks: Retail (6-8x), Manufacturing (4-6x), Technology (8-12x). Fast-moving consumer goods can exceed 15x.
Optimization Strategies
•Improve demand forecasting to reduce excess stock
•Negotiate shorter lead times with suppliers
•Implement just-in-time (JIT) inventory management
•Clear out slow-moving items with promotions
•Balance turnover with stockouts - too high can mean lost sales