FREE INVENTORY TOOL
Inventory Turnover Calculator
Calculate inventory turnover from cost of goods sold and average inventory, then estimate days inventory outstanding.
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Formula
Inventory turnover = cost of goods sold ÷ average inventory.
A higher ratio means inventory cycles through more frequently, but the appropriate level depends on category economics, availability targets and lead time. Turnover alone does not tell you which SKUs are overstocked or at risk of stocking out.