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Inventory Turnover Calculator

Estimate how many times your inventory moves through the business each year.

Estimate how many times your inventory moves through the business each year.

How would you like to calculate it?

Provide a practical estimate using amounts an owner is more likely to know immediately.

Use the current inventory value from your business records at cost or book value, not retail selling price.

Use direct costs from the latest completed month, not a partial month.

The quick method assumes your latest month and current inventory are typical. Seasonal or unusual sales and inventory levels may skew the estimate. Use the more accurate method when those amounts are not representative.

Results

Enter current inventory and most recent full month's direct costs, then choose Calculate to estimate annual inventory turnover.

Want to see how long inventory is sitting?

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Source: owner-advisor.com

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