Inventory Turnover Calculator
Calculate your inventory turnover ratio and days in inventory. Understand how efficiently you're managing stock and identify opportunities to improve cash flow.
Inventory Data
Total cost of products sold during the period
Inventory value at period start
Inventory value at period end
Enter inventory data to calculate turnover.
Industry Turnover Benchmarks
| Industry | Turnover | Days in Inventory |
|---|---|---|
| Grocery/Supermarket | 14-20x | 18-26 days |
| Fast Fashion | 8-12x | 30-45 days |
| Consumer Electronics | 6-10x | 36-60 days |
| General Retail | 4-6x | 60-90 days |
| Furniture | 3-5x | 73-120 days |
| Jewelry | 1-2x | 180-365 days |
Improving Inventory Turnover
High Turnover Benefits
Better cash flow, lower holding costs, reduced obsolescence risk, and fresher inventory. Aim to balance against stockout risk.
Low Turnover Risks
Tied-up capital, storage costs, potential markdowns, and obsolete stock. Analyze slow-moving SKUs and consider clearance strategies.
Optimization Strategies
Implement demand forecasting, optimize reorder points, use ABC analysis to prioritize fast movers, and consider dropshipping for slow sellers.
Balance is Key
Too high turnover may mean stockouts and lost sales. Find the sweet spot where you minimize holding costs while maintaining adequate stock levels.