Inventory Turnover Calculator

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Dynamic Inventory Turnover Calculator

Inventory Turnover Calculator

Inputs Tip: drag sliders or type exact numbers
Min: 0Max: 100,000,000
Min: 0Max: 100,000,000
Min: 0Max: 100,000,000
Min: 30Max: 366
Results
Inventory Turnover
—
times per period
—
Days Inventory Outstanding (DIO)
—
lower is generally better
0 Days: 365
Average Inventory
—
=(Beginning + Ending) / 2
Quick interpretation
Adjust inputs to see insights…
Inventory Turnover = COGS / Average Inventory   •   DIO = Days in Period / Turnover

What is it & why use it?
Calculate inventory turnover ratio and measure how efficiently stock is managed with our Inventory Turnover Calculator. This tool on Calci.in helps businesses assess efficiency of stock management and sales strategies.

Formula (explained)
Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Inventory
Average Inventory = (Opening Stock + Closing Stock) ÷ 2
Variables: COGS = Cost of Goods Sold, Avg Inventory = average of opening and closing stock.

Example calculation
COGS = ₹10,00,000, Opening = ₹2,00,000, Closing = ₹3,00,000 → Avg Inventory = ₹2,50,000 → Turnover = 10,00,000 ÷ 2,50,000 = 4 times.

Benefits & use cases
Evaluate stock efficiency
Improve cash flow management
Reduce overstocking & wastage

Related calculators on Calci.in
ROI Calculator
Break-Even Point Calculator
Profit Margin Calculator

External references (authority sources)
Investopedia – Inventory Turnover
Corporate Finance Institute – Inventory Turnover

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FAQs
Q1: What is inventory turnover?
A: It shows how many times inventory is sold and replaced during a period.
Q2: What is a good turnover ratio?
A: Depends on industry; higher means faster sales.
Q3: Can low turnover be bad?
A: Yes, it may indicate overstocking or weak sales.
Q4: Is higher turnover always good?
A: Not always, it could mean insufficient stock leading to missed sales.