Inventory Turnover Calculator
Calculate the inventory turnover ratio and days inventory outstanding from cost of goods sold and average inventory — a key retail efficiency metric.
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Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Rates and reference values are editable defaults and may vary by location, vendor and date. Verify critical figures independently. Varada Nexus accepts no liability for decisions made using this tool.
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Contact Varada Nexus for detailed consultationFAQ
How is inventory turnover calculated?
Turnover = cost of goods sold ÷ average inventory. It shows how many times stock is sold and replaced in a year.
What is days inventory outstanding?
Days = 365 ÷ turnover ratio — the average number of days stock sits before it sells.
Is a higher turnover always better?
Generally yes, but very high turnover can signal understocking and lost sales; balance it against availability.