Inventory Turnover Ratio Calculator

Measure how efficiently your business turns inventory into sales.

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Formulas

Turnover = COGS / Average Inventory
DSI = 365 / Inventory Turnover

DSI = Days Sales of Inventory (how many days to sell all current inventory)

FAQs

It varies by industry. Grocery: 15–20. Automotive: 8–10. Retail apparel: 4–6. Technology hardware: 8–12. Generally, higher turnover is better as it means less capital tied up in inventory.

It shows how many times a company sold and replaced its inventory during a period. Low turnover may indicate overstocking or weak sales; high turnover may indicate strong sales or lean inventory management.