Inventory Turnover Calculator
How many times your inventory turns and days on hand.
Equivalent to 4,5 times a year
How long average inventory takes to sell
- Average inventory
- $ 40.000.000
- Cost of goods sold per day
- $ 493.151
Calculateinventory turnover(how many times you sell and replenish your inventory in a period) anddays of inventory(how many days it takes to sell what you have). They are two of the most useful indicators for knowing whether you have idle capital in the warehouse.
Formulas: turnover = cost of goods sold for the period ÷ average inventory. Days of inventory = days in the period ÷ turnover. Average inventory is (opening + closing) ÷ 2, valued at cost.
When to use this tool
- At month- or year-end, to measure inventory health.
- To find categories with capital sitting idle in the warehouse.
- Before buying more stock of a SKU.
- To compare your operation from one period to another.
How to calculate inventory turnover
- 1Enter the cost of goods sold for the period (what the merchandise you sold cost you).
- 2Enter the inventory at the start and end of the period, valued at cost.
- 3Enter how many days the period has (365 for a year, 30 for a month).
- 4Check the turnover and the days of inventory.
Turnover by product and by warehouse, without spreadsheets
In Katuq inventory moves with every order and every transfer between warehouses. With KAI you can ask in plain language which products move least or how much inventory you have per warehouse, without building reports by hand.