Inventory Turnover Calculator
Calculate turnover ratio, DSI, and inventory efficiency
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Formula
Formula
Turnover = COGS / Avg Inventory. DSI = 365 / Turnover = Avg Inventory / COGS × 365. Weeks of Supply = DSI / 7.
Inventory turnover measures how efficiently a company manages its inventory. Higher turnover = less capital tied up in inventory, but too high risks stockouts. DSI shows average days inventory sits before sale.
How to Calculate Manually
- 1 Enter COGS for the period
- 2 Enter beginning and ending inventory
- 3 Select period length (default 365 days)
- 4 Choose industry for benchmarking
- 5 Calculator shows turnover, DSI, and performance
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Reference Table
| Industry | Typical Turnover | Typical DSI | Weeks Supply |
|---|---|---|---|
| Grocery/Supermarket | 12-15 | 24-30 | 3-4 |
| Fast Fashion Retail | 5-8 | 45-73 | 6-10 |
| General Retail | 4-6 | 60-90 | 9-13 |
| Manufacturing | 6-12 | 30-60 | 4-9 |
| Automotive | 2-3 | 120-180 | 17-26 |
| Electronics | 5-8 | 45-73 | 6-10 |
| Furniture | 3-5 | 73-120 | 10-17 |
Inventory turnover is a key metric for assessing how efficiently a company manages its inventory. It measures how many times a company sells and replaces its inventory over a given period. A higher turnover ratio indicates efficient inventory management, while a lower ratio may signal overstocking, obsolescence, or weak sales...
Frequently Asked Questions
-
What is inventory turnover?
-
What is Days Sales of Inventory (DSI)?
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What's a good turnover ratio?
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