What is a good inventory turnover?

It depends on what you sell: fresh food turns weekly, fashion four to six times a year, furniture and spare parts much less. Compare yourself with your own history and your category, and look SKU by SKU — an average hides the lines that never move.

Why use cost of goods sold rather than sales?

Because stock is valued at cost. Dividing sales by stock at cost mixes your margin into the answer and flatters it.

What are days of inventory?

How long your stock would last at the rate you sell it — the period's days ÷ turns. 91 days means the average unit sits for about three months before it sells, with its cost paid and not yet earned back.

Inventory turnover and days of inventory calculator

See how many times your stock turns over, how many days the average unit sits on the shelf, and how much cash a faster turn would free up.

Free, no sign-up. Everything is worked out in your browser — nothing you type is sent anywhere.

How it's worked out

average inventory = (start + end) ÷ 2 turnover = cost of goods sold ÷ average inventory days of inventory = days in the period ÷ turnover

At a target turnover, the stock you'd carry is cost of goods sold ÷ target; the difference from today's average is the cash it frees.

Questions

What is a good inventory turnover?: It depends on what you sell: fresh food turns weekly, fashion four to six times a year, furniture and spare parts much less. Compare yourself with your own history and your category, and look SKU by SKU — an average hides the lines that never move.
Why use cost of goods sold rather than sales?: Because stock is valued at cost. Dividing sales by stock at cost mixes your margin into the answer and flatters it.
What are days of inventory?: How long your stock would last at the rate you sell it — the period's days ÷ turns. 91 days means the average unit sits for about three months before it sells, with its cost paid and not yet earned back.

Know what your stock is worth, every day

Manifold values your stock by location and SKU from the receipts it really came from, with a cost-of-goods ledger and a report builder over sales, stock and margin — so turnover is a report, not a spreadsheet.

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