Agents for Data

Inventory Turnover Calculator

Calculate your inventory turnover ratio instantly. Compare against industry benchmarks and get AI-powered recommendations to improve stock efficiency.

Enter Your Values
$

Total cost of inventory sold during the period (annual recommended)

$

Inventory value at the start of the period (at cost)

$

Inventory value at the end of the period (at cost)

days

Number of days in the period (365 for annual, 90 for quarterly)

Formula

Inventory Turnover = COGS ÷ ((Beginning Inventory + Ending Inventory) ÷ 2)

This ratio measures how many times you sell and replace your inventory during a period. Higher turnover generally indicates efficient inventory management and strong sales.

Inventory Turnover Ratio5

5.0x annual turnover — Good. Healthy for most retail and manufacturing.

Days in Inventory (DII)73.0 days
Average Inventory Value$100,000
Annualized Turnover5.0x / year
Performance RatingGood
Sell-Through Rate500%
Est. Holding Cost (25% rate)$25,000
Stock-to-Sales Ratio0.20
Inventory Change+50.0%

How Does Your Inventory Turnover Compare?

Very LowUnder 3x — Potential dead stock issues, high carrying costs
< 2.99
Below Average3-5x — Typical for furniture, jewelry, luxury goods
3 – 4.99
Average5-8x — Healthy for most retail and manufacturing
5 – 7.99
Good8-12x — Strong performance for wholesale/electronics
8 – 11.99
Excellent12x+ — High-velocity (grocery, restaurants, perishables)
> 12

Source: Industry benchmark data, APICS/ASCM standards

How to Calculate Inventory Turnover

  1. Enter your Cost of Goods Sold (COGS) for the period
  2. Input your beginning inventory value at cost
  3. Input your ending inventory value at cost
  4. Optionally adjust the period length (365 days for annual)
  5. View your turnover ratio, days in inventory, and performance rating
  6. Compare against industry benchmarks
  7. Chat with our AI Ecommerce Analyst for personalized optimization strategies

Industry Inventory Turnover Benchmarks

14-20 turns/year

Grocery & Supermarkets

4-6 turns/year

Apparel & Fashion Retail

6-8 turns/year

Electronics Retail

4-6 turns/year

Furniture & Home Goods

6-8 turns/year

Auto Parts & Accessories

8-12 turns/year

Wholesale Distribution

4-8 turns/year

Manufacturing (General)

20-30 turns/year

Restaurants & Food Service

1-2 turns/year

Jewelry & Luxury Goods

4-6 turns/year

Hardware & Building Materials

Source: Industry benchmark data, APICS/ASCM standards

Frequently Asked Questions