Inventory Turnover & Days of Inventory Calculator
Measure how efficiently your business sells inventory and how long stock stays on hand. Calculate turnover ratio and days of inventory instantly.
Enter your metrics and click calculate to see results
What Is Inventory Turnover?
Inventory Turnover measures how many times your company sells and replaces inventory in a given period. A higher ratio means faster-moving stock and better cash flow efficiency.
🧮 Formula Example
If COGS = $500,000 and Average Inventory = $100,000:
💡 Why Inventory Turnover Matters
Inventory Efficiency
Indicates how well you manage stock levels
Avoid Stock Issues
Prevents both stockouts and overstocking
Cash Flow
Improves liquidity and reduces tied-up capital
Supply Chain
Informs purchasing and supplier decisions
📊 Good vs. Bad Turnover Ratios
| Industry | Average Turnover | Days of Inventory |
|---|---|---|
| Retail | 8–10 | 30–45 days |
| Manufacturing | 5–7 | 50–75 days |
| Wholesale | 6–9 | 40–60 days |
| eCommerce | 10–12 | 25–35 days |
⚙️ How to Improve Turnover
Optimize Product Mix
Focus on fast-moving items and discontinue slow sellers
Demand Forecasting
Use data analytics to predict customer demand
Reduce Obsolete Stock
Implement clearance sales and write-offs
Supplier Relationships
Negotiate faster replenishment cycles