Calculate inventory turnover ratios and average days outstanding.
Calculator Parameters
Enter details and click calculate to view the results instantly.
Calculation Examples
Scenario Inputs
Output Result
cogs : 200000, startInv : 45000, endInv : 55000
Turnover Ratio: 4.00, Days Outstanding: 91.25 Days
About Inventory Turnover Calculator
Inventory Turnover Ratio Solver. Calculate inventory turnover ratios and average days outstanding. Starlightopia provides this tool completely free and online, optimized for instant, accurate computations.
How It's Calculated
What is the formula for the inventory turnover ratio?
Inventory Turnover Ratio = Cost of Goods Sold (COGS) / Average Inventory Value.
Technical Specifications
CategoryBusiness
Target ValueTurnover Efficiency
Inputs Required (3)
Cost of Goods Sold (Annual) ($) (number)
Beginning Inventory Value ($) (number)
Ending Inventory Value ($) (number)
Frequently Asked Questions
What is the formula for the inventory turnover ratio?
Inventory Turnover Ratio = Cost of Goods Sold (COGS) / Average Inventory Value.
How do you calculate average inventory value?
Average Inventory = (Beginning Inventory Value + Ending Inventory Value) / 2.
What does a high inventory turnover ratio indicate?
A high ratio indicates strong sales performance and efficient stock management, showing that inventory moves quickly.
What does a low inventory turnover ratio indicate?
A low ratio suggests weak sales or overstocking, meaning capital is tied up in slow-moving inventory.
How do you calculate the average days inventory outstanding (DIO)?
Days Inventory Outstanding = 365 days / Inventory Turnover Ratio.