Cash & Working Capital

Inventory Turnover Calculator

How many times a year your inventory sells through — slow turns are cash sitting on shelves.

Inputs

  • Cost of goods sold (period)
  • Average inventory value
  • Period length

How to use this calculator

  1. Enter your cost of goods sold and your average inventory value for the period.
  2. The result is how many times you sold through and replaced stock.
  3. Higher turnover ties up less cash; very low turnover signals dead stock and markdown risk.

What each term means

Inventory turnover
How many times you sell and replace your average inventory in a period.
Days of inventory
The period divided by turnover: how long stock sits before selling.
Dead stock
Inventory that turns so slowly it ties up cash and risks markdowns.

Educational disclaimer: Outputs are simplified educational estimates built from the numbers you enter — they are not financial, legal, tax, or investment advice, and real decisions deserve verified figures and qualified professionals.

Supply Chain

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