Inventory Turnover Calculator
See how many times you sell through your inventory in a period and how many days it takes. Enter your cost of goods sold and average inventory value.
Enter Your Numbers
COGS over the period, e.g. one year
At cost, averaged over the period
Use 365 for a year
Results
Enter values to see results
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Understanding Inventory Turnover
What inventory turnover tells you
Inventory turnover = Cost of Goods Sold / Average Inventory. It measures how many times you sell and replace your stock in a period. Higher turnover means capital is not tied up in unsold goods; very high turnover can mean you risk stockouts.
Days sales of inventory
DSI converts turnover into days: 365 / turnover. A DSI of 60 means it takes about two months to sell through your average inventory. Tracking DSI over time reveals whether stock is moving faster or slower.
Pricing drives turnover
Price is one of the biggest levers on turnover. Overpriced stock sits; well-priced stock moves. Monitoring competitor prices helps you identify slow movers that are priced above the market and reprice them to clear inventory faster.
Move Slow Inventory With Smarter Pricing
Price Patrol monitors competitor prices so you can spot overpriced, slow-moving stock and reprice it to clear faster.
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