Inventory Turnover Calculator
Measure how frequently your inventory cycles and compute Days Sales of Inventory (DSI).
Inventory & COGS Data
Direct production, inventory purchase, or fulfillment cost over the period.
365 for full year, 90 for quarter, 30 for monthly tracking.
Times stock was sold and replaced
Average days stock sits in warehouse
A higher turnover ratio indicates lean working capital and high sales velocity. A low ratio or high DSI (>90 days) indicates obsolete stock risk and locked cash flow.
Formulas & Methodology
Average Inventory
Avg = (Beginning + Ending) ÷ 2
Turnover Ratio
Turnover = COGS ÷ Average Inventory
Days Sales of Inventory (DSI)
DSI = (Average Inventory ÷ COGS) × Days
Frequently Asked Questions
How is Inventory Turnover Ratio calculated?
Inventory Turnover Ratio = Cost of Goods Sold (COGS) ÷ Average Inventory.
What does Days Sales of Inventory (DSI) indicate?
DSI indicates the average number of days it takes for a business to turn its inventory into sales. Lower DSI reflects faster inventory conversion.
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