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Inventory Turnover Calculator

Stock turnover ratio and days of inventory.

₹12 Lakh
₹

Purchase cost of the goods you sold in the period, not the sale value

days

365 for a year, 90 for a quarter, 30 for a month

₹
₹
Inventory turnover
6.00 times
in 365 days
Days inventory outstanding
61 days
Average days stock sits before it sells
Average inventory
₹2,00,000

Turnover = COGS ÷ average inventory; days = period ÷ turnover. Higher turnover usually means fresher stock and less cash tied up. Compare with businesses in your own trade: a grocery store may turn stock 12–20 times a year, a jewellery or furniture shop 1–4 times.

How to use

  1. 1Enter the cost of goods sold for the period.
  2. 2Enter the period length in days.
  3. 3Enter the opening and closing inventory at cost.
  4. 4See the turnover ratio, days of stock and average inventory.

Frequently asked questions

What is the inventory turnover ratio?

How many times you sell and replace your stock in a period: cost of goods sold ÷ average inventory.

What are days inventory outstanding?

The average number of days stock sits before it is sold: period days ÷ turnover ratio.

Should I use sales or cost of goods sold?

Cost of goods sold, because inventory is valued at cost. Using sales overstates the ratio.

What is a good inventory turnover?

It depends on the trade. Groceries and FMCG turn fast (12+ times a year); furniture, jewellery and machinery turn slowly. Compare with your past periods and peers.

How can I improve it?

Stock fast-moving items, clear dead stock with offers, order smaller quantities more often and track reorder levels.

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