Inventory Turnover

What is Inventory Turnover?

Measure how efficiently your business sells and replaces inventory. Calculate turnover ratio and days inventory outstanding to optimize stock levels and cash flow.

Features & Benefits

• Inventory turnover ratio
• Days inventory outstanding
• COGS-based calculation
• Average inventory method
• Industry comparison
• Cash flow insights

Frequently Asked Questions

What is inventory turnover ratio?

How many times inventory is sold and replaced in a period. Turnover = COGS / Average Inventory. Higher is generally better.

What is a good inventory turnover?

Varies by industry. Grocery: 12-15. Retail: 4-6. Manufacturing: 4-8. Too high may mean stockouts; too low ties up cash.

How do I improve inventory turnover?

Reduce slow-moving stock, improve demand forecasting, optimize reorder points, negotiate better supplier terms, or discount old inventory.

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