Inventory Turnover Calculator
Calculate inventory turnover ratio and days inventory outstanding to measure inventory management efficiency.
Financial Data
$600,000
$10,000$5,000,000
$80,000
$0$1,000,000
$120,000
$0$1,000,000
$900,000
$10,000$5,000,000
Inventory Turnover Ratio
6.00x
Inventory turns over 6.0 times per year
Days Inventory Outstanding
61 days
Average Inventory
$100,000
Gross Margin
33.3%
Inventory/Sales
11.1%
Inventory Efficiency
Turnover Rate6.00x per year
Days to Sell61 days
Inventory as % of COGS16.7%
Industry Benchmarks
Grocery/Perishables12-20x
Retail (General)4-8x
Manufacturing4-6x
Automotive/Heavy Equipment2-4x
Assessment: Good inventory management
Inventory Turnover Formulas
Inventory Turnover
COGS / Average Inventory
Average Inventory = (Beginning + Ending) / 2
Days Inventory Outstanding
365 / Inventory Turnover
Average days to sell inventory