See how fast your stock sells. Enter cost of goods sold and average inventory to get the turnover ratio and days of inventory.
Use annual figures. Results update live.
Enter figures to see the result.
| Inventory turnover | - |
| Days of inventory (DIO) | - |
The ratio shows how many times per year you sell through your entire stock: COGS divided by average inventory. A turnover of 4 means the shelves empty and refill four times annually. Days of inventory (DIO) flips it into days, which is easier to picture: 365 divided by turnover.
Higher is usually better: cash is not trapped on shelves. But too high risks stockouts and rush orders. Benchmarks vary wildly by industry (groceries turn fast, furniture slowly), so compare against your own history and sector averages, not a universal ideal.