Inventory turnover calculator
Annual COGS over average inventory, both at cost. Two numbers from reports you already have, and a read on what your result costs — in stockouts if it is high, in trapped cash if it is low.
Both numbers at cost, over the same 12 months. Straight from your P&L and stock report.
Cost of goods sold over the last 12 months.
Average stock value over the same window. Current value is an honest start.
Turns per year
4
Days of inventory
91 days
365 ÷ turns. The same number your CFO reads.
Cash in stock
£60,000
What one turn cycles through.
Within the range for this category. The store-level ratio is fine, which is exactly when it hides things: an average of 4 can be half your cash sitting at 1. The real read is per SKU.
How it works
Turns per year = annual COGS ÷ average inventory at cost. Days of inventory = 365 ÷ turns: the same fraction, read as time. Both sides at cost, over the same window — revenue over stock at cost flatters the number and gets compared against benchmarks computed the honest way.
The category ranges are working ranges, not targets: most healthy DTC stores land between 2 and 6 turns, replenishment-heavy categories higher, seasonal and high-ticket lower. Grocery runs past 12; furniture crawls below 2. Moving toward a range costs something in either direction, which is what the read under the result is about.
The store-level ratio is a smoke alarm, not a diagnosis. The decisions live at SKU grain: an average of 4 can be half your cash at 1. When something looks off here, the next step is turns per SKU.
Go deeper
- What is a good inventory turnover ratio for an online store?
- Days of inventory outstanding: the same number your CFO reads
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