Inventory Turnover Calculator

Measure how efficiently your business manages inventory

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What is Inventory Turnover Ratio?

• Measures how many times inventory is sold and replaced over a period

• Higher ratio indicates efficient inventory management

• Lower ratio may suggest overstocking or slow-moving inventory

Calculation Results

Inventory Turnover Ratio: 0.00
Days in Inventory: 0 days
Inventory Cycles per Year: 0.00 times

Input Breakdown

Cost of Goods Sold ₦0.00
Average Inventory Value ₦0.00

Performance Interpretation:

Industry Benchmarks:

Excellent Performance: ≥ 10 times/year
Good Performance: 6-10 times/year
Average Performance: 4-6 times/year
Below Average: 2-4 times/year
Poor Performance: < 2 times/year

Formula Used:

Inventory Turnover Ratio = Cost of Goods Sold ÷ Average Inventory

Days in Inventory = 365 ÷ Inventory Turnover Ratio

Average Inventory = (Beginning Inventory + Ending Inventory) ÷ 2