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Inventory Turnover Calculator
Calculate how efficiently you're selling and replacing your inventory stock
Calculate Your Inventory Turnover
Cost of Goods Sold (COGS) & Average Inventory Value
$
Total cost of inventory sold during the period
$
(Beginning Inventory + Ending Inventory) ÷ 2
What is Inventory Turnover?
Inventory turnover is a financial ratio that measures how many times a company has sold and replaced its inventory during a specific period. A higher turnover ratio generally indicates strong sales and efficient inventory management, while a lower ratio may suggest weak sales or excess inventory.
Inventory Turnover = Cost of Goods Sold ÷ Average Inventory Value
Why It Matters:
- •Indicates how efficiently you manage inventory
- •Higher ratio means faster sales and less capital tied up
- •Lower ratio may indicate overstocking or slow sales
- •Industry benchmarks vary significantly
Typical turnover ratios vary by industry. Grocery stores might have 15-20x, while furniture stores might have 4-6x.
Upgrade to Automated Inventory Tracking
With our inventory management platform, you can:
- ✓Track inventory turnover in real-time
- ✓Identify slow-moving products automatically
- ✓Get alerts when stock levels are too high or low
- ✓Optimize reorder points based on historical data
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