Inventory Turnover Calculator for Ratio and Days in Inventory
How to Calculate Ratio and Days in Inventory with the Inventory Turnover Calculator
Calculate inventory turnover ratio and days inventory outstanding from COGS and average stock. Assess how efficiently inventory is sold and replaced.
Formula
Inventory turnover = COGS / average inventory; days inventory = days / turnover
How to use the result
Balance working capital against stockout risk; compare products with similar lead times and seasonality.
Industry ranges are directional. Use the same cost basis for COGS and inventory value. Inputs and calculations stay in this browser.
Measure how efficiently you manage inventory. Calculate turnover ratio, days in inventory, and optimal stock levels for your business.
Calculate Inventory Turnover Ratio
Days Sales in Inventory (DSI)
Calculate Average Inventory
Average Inventory
$0
Inventory Change
$0
Change %
0.00%
Trend
Stable
Optimal Inventory Level
Industry Turnover Benchmarks
Grocery/Food
12-20x
Fashion/Apparel
4-6x
Electronics
6-8x
Automotive Parts
4-8x
Home Goods
4-6x
E-commerce General
8-12x
Understanding Inventory Turnover
Inventory Turnover Formula
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory
Days Sales in Inventory
DSI = 365 ÷ Inventory Turnover Ratio. This shows how many days it takes to sell through inventory.
Why It Matters
- High turnover indicates efficient inventory management
- Low turnover may signal overstocking or weak sales
- Optimal turnover balances stock availability with holding costs
- Industry benchmarks vary significantly
Improvement Strategies
- Implement demand forecasting
- Use just-in-time inventory practices
- Clear slow-moving inventory with promotions
- Optimize reorder points and quantities