Business
Inventory Turnover Calculator
Inventory efficiency metric.
How many times inventory sells and replaces.
Formula
COGS/Average Inventory. Higher=efficient.
Benchmarks
- Grocery: 10-20/yr
- Retail: 2-4
- Manufacturing: 4-8
DSI
365/Turnover = days to sell.
Frequently Asked Questions
Good turnover?
Grocery:10-20. Retail:2-4. Higher=better.
Calculate?
COGS÷avg inventory. $500K÷$100K=5.
Days to sell?
365÷turnover. 5turns=73days.