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Finance

Inventory Turnover Ratio Calculator

Determine how many times your inventory is sold and replaced over a year, along with average days to sell inventory.

Inputs

010,00,00,00,000
11,00,00,00,000

Calculation Results

Inventory Turnover Ratio

4

Days Sales in Inventory

91.25 Days

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Formula & Mathematical Explanation

Inventory Turnover=COGSAverage Inventory\displaystyle \text{Inventory Turnover} = \frac{\text{COGS}}{\text{Average Inventory}}

Inventory turnover indicates how many times a company sells and replaces inventory in a period. Days Sales in Inventory (DSI) measures the average duration (in days) that items spend in stock.

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