PALLAS / CALCULATOR
Inventory Turnover Calculator
Measure how many times inventory is sold or consumed during a period, then translate that turnover into days of inventory.
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INPUT
Enter values
Method & formula
The calculator averages beginning and ending inventory at cost, then divides COGS by that average to get turnover. It uses the reporting-period length to express the same result as days of inventory.
- Average inventory = (beginning inventory + ending inventory) ÷ 2
- Inventory turnover = COGS ÷ average inventory
- Days inventory = period days ÷ inventory turnover
Example
COGS of 240,000 with beginning inventory of 50,000 and ending inventory of 70,000 gives average inventory of 60,000 and turnover of 4×. Over 365 days, that equals 91.25 days of inventory.
FAQ
Why use inventory at cost rather than selling price?
COGS is measured at cost, so average inventory should use the same basis. Mixing cost and retail values would distort the ratio.
What if average inventory is zero?
There is no valid inventory denominator, so turnover cannot be calculated.