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Inventory turnover and days

Calculate inventory turns and average inventory days using period cost of goods sold and opening and closing stock at cost. Turns refer to the entered period, not automatically a year. Use the same currency, cost basis and period throughout.

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Your inputs

Edit the example inputs to match your task. Results update as you edit.

0–1,000,000,000,000,000
0–1,000,000,000,000,000
0–1,000,000,000,000,000
0.000001–3,660 Days

Calculations run in your browser. Inputs are not saved or sent to analytics.

How it works

Formula

  • Average inventory at cost=Opening inventory at cost+Closing inventory at cost2
  • Inventory turns per period=Cost of goods sold for the periodAverage inventory at cost
  • Average inventory days=Days in the periodInventory turns per period
Input and formula key

Your result

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Sources

Assumptions and limitations

Use the same currency, cost basis and period throughout. The average of two stock snapshots can miss seasonal swings. Zero cost of sales gives zero turns and undefined inventory days; no industry benchmark is assumed.

How to use this tool

Set up the inputs

Enter cost of goods sold, not revenue. Enter opening and closing inventory at cost and the number of days covered by those figures.

Worked examples

  • Estimate days of stock from annual costs

    (18,000 + 22,000) / 2 = 20,000; 120,000 / 20,000 = 6; 365 / 6 ≈ 60.8333 d.

Frequently asked questions

How should I read the result from Inventory turnover and days?

Turns refer to the entered period, not automatically a year. Inventory days is a ratio-based average, not the age of individual items.

Processing and privacy

The calculation or transformation runs in your browser. The tool does not send its input values or generated output to an application server. Loading a page still makes infrastructure requests; optional analytics and Google consent messages have separate controls.

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Help and feedback

Consult the linked sources for definitions and reference data. Contact Support if you have a question or notice a problem.

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Explore this subject: Business and production

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