Finance

Inventory Turnover Calculator

Find inventory turnover and days of inventory.

Calculated Output

Inventory turnover (x) 5

Days of inventory (days) 73

Formula: turnover = COGS ÷ average inventory

Step-by-Step Breakdown

1. Values used:

2. Cost of goods sold = 500,000 $

3. Average inventory = 100,000 $

5. Inventory turnover = Cost of goods sold / Average inventory = 500,000 / 100,000 = 5x

6. Days of inventory = 73days

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The math behind it

turnover = COGS ÷ average inventory; days of inventory = 365 ÷ turnover.

$500k ÷ $100k → 5x (73 days).

Higher better?

Usually yes, but too high can mean stockouts.