Stock Turnover Ratio Calculator
Measure how efficiently your stock sells. Enter your cost of goods sold and average inventory value, and the calculator finds the turnover ratio, days of inventory, and a plain English interpretation of what the numbers mean.
Your figures
Results
Turnover ratio
—
times per year
Days of inventory
—
average days stock sits before sale
How to use
- Enter your cost of goods sold for the year (total cost of items sold, not revenue).
- Enter your average inventory value — (opening stock + closing stock) divided by 2.
- Press Calculate to see the turnover ratio, days of inventory and interpretation.
Tips
- A very low ratio may mean overstocking or slow-moving items tying up your cash.
- A very high ratio can mean lost sales from stockouts, not just efficiency.
- Always compare against businesses like yours; food and electronics are very different.
- Track the ratio every quarter — the trend matters more than one number.