Summary
Estimate inventory turnover and average days inventory is held.
Calculation details
This uses a 365-day year and a two-point average inventory approximation.
Formula
Average inventory = (beginning + ending inventory) / 2; turnover = COGS / average inventory; days = 365 / turnover.
Worked example
Worked example
$120,000 average inventory gives 5 turns, or about 73 days in inventory.
How it works
Enter COGS with beginning and ending inventory. Turnover uses a two-point average and a 365-day year.
Frequently asked questions
What does the Inventory Turnover Calculator calculate?
This uses a 365-day year and a two-point average inventory approximation.
Should I use this result for financial reporting?
Use it as an estimate and verify reporting, accounting, tax, and legal treatment with qualified professionals.