Measure how efficiently inventory is managed and sold over a period (e.g., monthly, annually).
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Note
Inventory turnover varies by industry. Compare your ratio to industry benchmarks. This calculator uses annual COGS and average inventory; for periodic measurements, adjust inputs accordingly.
Fact Checked by Kazi Jihad
Business Operations Consultant
Inventory turnover measures how many times a business sells and replaces its inventory over a period. It indicates inventory management efficiency. The formula: COGS ÷ Average Inventory.
A higher turnover suggests strong sales or efficient inventory control. A lower turnover may indicate overstocking or slow-moving items. Use this calculator to assess your inventory performance.