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Inventory Turnover Calculator

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What is Inventory Turnover Calculator?

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Inventory turnover measures how many times a company sells and replaces its stock in a given period. A higher ratio means inventory is sold quickly; a lower ratio suggests slow-moving stock, potential obsolescence, or overstocking.

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How to Inventory Turnover Calculator

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  1. 1Calculate COGS for the period (usually annual)
  2. 2Calculate average inventory: (Opening + Closing inventory) / 2
  3. 3Inventory turnover = COGS / Average inventory
  4. 4Days inventory outstanding = 365 / Inventory turnover

Worked Examples

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Example 1
Given:COGS $500k · Average inventory $100k
परिणाम:5.0x turnover (73 days)

Stock turns over every 73 days

Typical inventory turnover by industry

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IndustryTypical turnoverDays in inventory
Grocery / Food retail20–30x12–18 days
Clothing retail4–8x46–91 days
Electronics5–10x37–73 days
Automotive6–12x30–61 days
Manufacturing4–8x46–91 days
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Pro Tip

High turnover is good, but not if it means frequent stockouts. Pair inventory turnover with fill rate (% of orders fulfilled from stock) for a complete picture.

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Did you know?

Walmart achieves over 8x inventory turnover, meaning it sells its entire stock every ~45 days — a key competitive advantage over slower-moving retailers.

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Deep Dive

Read the full guide on how to use this calculator effectively

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Reviewed October 2026
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