Inventory Turnover Calculator
Calculate your inventory turnover ratio and days to sell inventory.
Measure how efficiently your business manages stock.
Inventory Turnover
Inventory Turnover Ratio measures how many times you sell and replace inventory in a period.
Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory
Days Sales of Inventory (DSI):
DSI = 365 / Inventory Turnover Ratio
Average Inventory:
Average Inventory = (Beginning Inventory + Ending Inventory) / 2
Benchmarks by industry:
- Grocery/perishables: 14–20 turns/year (18–26 DSI)
- Apparel/fashion: 4–6 turns/year (60–90 DSI)
- Electronics: 6–10 turns/year (36–60 DSI)
- Furniture: 3–5 turns/year (73–120 DSI)
- Auto parts: 4–8 turns/year (45–90 DSI)
Higher turnover generally means efficient operations, but extremely high ratios may indicate stock shortages. Lower turnover may suggest overstocking or obsolete inventory.
Example: COGS of $500,000, average inventory of $100,000:
- Turnover: 5× per year
- DSI: 73 days to sell through inventory