Inventory Turnover Ratio Calculator
Measure your e-commerce store's inventory efficiency with our free calculator. Input your COGS and inventory values to find your Inventory Turnover Ratio and Average Days of Inventory on Hand.
Example and tips
A store with $240,000 in annual cost of goods sold and an average inventory valued at $48,000 has a turnover ratio of 5. That means stock cycles five times a year, or roughly 73 days of inventory sitting on the shelf before it sells.
- For most DTC brands, a ratio of 4 to 6 is healthy. Under 2 means cash is frozen in slow stock.
- A ratio above 10 looks efficient but often signals stockouts. Check lost-sale reports before celebrating it.
- Compute turnover per SKU, not store-wide. The average hides the dead stock you should be discounting now.
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How does Inventory Turnover Ratio Calculator work?
Measure your e-commerce store's inventory efficiency with our free calculator. Input your COGS and inventory values to find your Inventory Turnover Ratio and Average Days of Inventory on Hand.
1) Input your financial data
Provide your total Cost of Goods Sold (COGS) for a period, along with the value of your inventory at the beginning and end of that same period.
2) Let the tool do the math
Our calculator instantly computes your average inventory value and then uses it to determine your inventory turnover ratio for the period.
3) Understand your inventory health
Get your turnover ratio and the average number of days it takes to sell your stock. Use this insight to optimize your purchasing and sales strategy.
Frequently asked questions
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