{
    "name": "Retail Inventory Turnover Calculator",
    "url": "https://calculators.geekmidst.com/calculators/retail-inventory-turnover-calculator",
    "markdown": "https://calculators.geekmidst.com/calculators/retail-inventory-turnover-calculator.md",
    "category": "Commerce & retail",
    "description": "Work out inventory turnover from cost of goods sold and average inventory, plus days of inventory on hand and an annualised turnover for shorter periods.",
    "summary": "Inventory turnover is cost of goods sold divided by average inventory at cost: how many times you sold through your stock in the period.",
    "also_called": [
        "Stock turn calculator",
        "Inventory turns calculator"
    ],
    "applies_to": "Worldwide",
    "last_updated": "2026-10-29",
    "computation": "Results are computed in the visitor’s browser on the HTML page. This API describes the calculator; it does not compute results.",
    "inputs": [
        {
            "name": "cogs",
            "label": "Cost of goods sold",
            "type": "number",
            "default": "600000"
        },
        {
            "name": "begin_inventory",
            "label": "Opening inventory (at cost)",
            "type": "number",
            "default": "140000"
        },
        {
            "name": "end_inventory",
            "label": "Closing inventory (at cost)",
            "type": "number",
            "default": "100000"
        },
        {
            "name": "days",
            "label": "Days in period",
            "type": "number",
            "default": "365",
            "unit": "days"
        },
        {
            "name": "currency",
            "label": "Currency",
            "type": "currency",
            "default": "USD"
        }
    ],
    "outputs": [
        {
            "key": "turnover",
            "label": "Inventory turnover",
            "format": "multiple"
        },
        {
            "key": "days_inventory",
            "label": "Days of inventory",
            "format": "number"
        },
        {
            "key": "avg_inventory",
            "label": "Average inventory",
            "format": "currency"
        },
        {
            "key": "annualised_turnover",
            "label": "Annualised turnover",
            "format": "multiple"
        }
    ],
    "formula": {
        "text": "Average inventory = (Opening + Closing) ÷ 2;  Turnover = COGS ÷ Average inventory;  Days of inventory = Days in period ÷ Turnover",
        "variables": {
            "COGS": "cost of goods sold in the period",
            "Opening, Closing": "inventory valued at cost at the start and end"
        }
    },
    "worked_example": {
        "inputs": {
            "cogs": "600000",
            "begin_inventory": "140000",
            "end_inventory": "100000",
            "days": "365",
            "currency": "USD"
        },
        "steps": [
            "Average inventory = (140,000 + 100,000) ÷ 2 = 120,000.",
            "Turnover = 600,000 ÷ 120,000 = 5 times.",
            "Days of inventory = 365 ÷ 5 = 73 days."
        ],
        "result": "Selling $600,000 of goods at cost against $120,000 of average stock is 5 turns a year, or about 73 days of inventory."
    },
    "interpretation": "Higher turnover means stock sells faster and ties up less cash, but too high can mean stock-outs. Compare with your own history and similar retailers, not a universal target.",
    "assumptions": [
        "Both COGS and inventory are valued at cost.",
        "A simple average of opening and closing stock represents the period."
    ],
    "limitations": [
        "Seasonal businesses should average monthly inventory counts instead of two points."
    ],
    "rules": null,
    "faqs": [
        {
            "question": "Why use COGS rather than sales?",
            "answer": "Inventory is held at cost, so dividing sales (at retail) by inventory at cost overstates turnover. If you only have retail values, use sales and inventory both at retail."
        },
        {
            "question": "What is days of inventory?",
            "answer": "Roughly how many days your current stock would last at the period’s rate of sale."
        }
    ],
    "sources": [],
    "related": [
        {
            "name": "Stock Reorder Point Calculator",
            "url": "https://calculators.geekmidst.com/calculators/stock-reorder-point-calculator"
        },
        {
            "name": "Economic Order Quantity (EOQ) Calculator",
            "url": "https://calculators.geekmidst.com/calculators/economic-order-quantity-calculator"
        },
        {
            "name": "Shrinkage Rate Calculator",
            "url": "https://calculators.geekmidst.com/calculators/shrinkage-rate-calculator"
        }
    ],
    "disclaimer": null,
    "publisher": "GM¹X CalcVerse"
}