📦 Inventory Turnover Calculator

Inventory Turnover Calculator

Calculate your inventory turnover ratio, days sales of inventory (DSI), and working capital efficiency. Benchmark against your industry to identify overstocking or understocking.

Inventory & COGS Data

Annual or period figures

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Industry avg: 20-30% of inventory value (storage, insurance, obsolescence)
Inventory Turnover Ratio
Days Sales of Inventory
Turnover Ratio
DSI (Days)
Annual Holding Cost
Gross Margin
COGS
Average Inventory
Inventory Turnover Ratio
Days Sales of Inventory (DSI)
Annual Holding Cost
Revenue
Gross Profit
Gross Margin
Assessment

FAQ

What is inventory turnover ratio?
Inventory Turnover = COGS / Average Inventory. It shows how many times you sell and replace your entire inventory in a period. Higher is generally better — it means you're selling quickly and not tying up cash in slow-moving stock.
What are days sales of inventory (DSI)?
DSI = 365 / Inventory Turnover Ratio. It represents the average number of days it takes to sell all your current inventory. Lower DSI means faster selling. Grocery stores might have 15 DSI; jewelry stores might have 180+ DSI.
What is a good inventory turnover ratio?
Varies significantly by industry: Grocery: 15-25×, Retail: 6-12×, Electronics: 8-12×, Automotive: 6-8×, Manufacturing: 4-8×, Fashion: 4-6×, Jewelry: 1-2×. Compare your ratio against industry-specific benchmarks rather than a universal standard.
What causes poor inventory turnover?
Slow inventory turnover can indicate: overstocking, poor demand forecasting, obsolete products, pricing issues, inadequate marketing, or supply chain problems. Very high turnover might mean stockouts and lost sales due to understocking.