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Inventory Turnover Calculator

LAST UPDATE: August 23rd, 2018

Calculator

Revenue Method

Cost of Goods Sold Method

What is Inventory Turnover?

Turnover is measured as a ratio of Sales to Inventory over a year. A turnover of ‘1’ means that over the entire contents of inventory is sold in over the year.

DSI (days of sales inventory) is a measurement of how many days are required to turn over the entire inventory.

Formula

Turnover = (Sales / Inventory) x 100%

DSI = Turnover / 365

Example

A business has sales of $50,000, cost of goods sold of $20,000, and average inventory of $12,000.

Turnover (revenue method) = ($50,000 / $12,000) x 100% = 4.1667 x 100% = 416.67%

Turnover (cost of goods sold method) = ($20,000 / $12,000) x 100% = 1.667 x 100% = 166.67%

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