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Inventory Turnover Calculator
COGS ÷ Avg Inventory — how many times per year inventory cycles.
Enter values to see your result
Frequently asked questions
Low turnover — always bad?
High-margin / luxury businesses (watches, wine) have low turnover by design. Low-margin / fast-moving (groceries) need high turnover. Match to your model.
Turnover vs Days Inventory?
Reciprocal. Turnover 12x = 365/12 = 30 days. Most operations managers think in days; investors use turnover.
How to improve turnover?
Accurate forecasting, smaller batch sizes, JIT delivery, better demand sensing, discounting slow-movers.
What about seasonal businesses?
Use seasonal-averaged inventory. Festival retailers see spikes — annual turnover smooths this out.