Inventory Turnover Calculator

Cash tied up on a shelf is cash you can't use elsewhere

Inventory turnover tells you how many times you sell through your average stock in a given period. A low turnover ratio usually means cash sitting in slow-moving stock; a very high one can mean you're at risk of stockouts. Neither extreme is automatically good — the right number depends on your category and how easily you can restock.

Enter your cost of goods sold for a period (month or year) and your average inventory value over the same period to get your turnover ratio and the equivalent number of days of stock you're holding. Track this over time rather than in isolation — a falling turnover ratio is often the earliest sign of slow-moving or dead stock building up.