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Calculate turnover, average inventory and approximate days inventory held.
Calculate turnover, average inventory and approximate days inventory held.
cogs=480000
beginning=70000
ending=90000
days=365Average inventory: 80000
Formula: average inventory = (beginning inventory + ending inventory) ÷ 2
Substitution: (70000 + 90000) ÷ 2 = 80000
Inventory turnover: 6 times
Formula: inventory turnover = cost of goods sold ÷ average inventory
Substitution: 480000 ÷ 80000 = 6 times
Approximate days inventory held: 60.8333
Formula: period days ÷ inventory turnover = 365 ÷ 6 = 60.8333Paste content, enter parameters or choose the files you need in “COGS, beginning inventory, ending inventory and period days”.
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Review the result under “Inventory metrics”, then copy or download it after checking the output.
Result guide
Enter cost of goods sold plus beginning and ending inventory for the same period. The calculator averages the two inventory balances, divides COGS by that average, and converts the turnover ratio into approximate days held.
Average inventory = (beginning inventory + ending inventory) ÷ 2. Inventory turnover = cost of goods sold ÷ average inventory. Approximate days held = period days ÷ inventory turnover.
With COGS of 480,000, beginning inventory of 70,000 and ending inventory of 90,000, average inventory is 80,000. Turnover is 6 times and approximate days held are 365 ÷ 6 = 60.83 days.
A higher turnover can indicate faster movement, but there is no universal target. Compare the same business, product category and period definition over time; seasonality, stockouts, valuation policy and unusual purchases can change the result.
Inventory is generally measured at cost, so comparing it with cost of goods sold keeps the numerator and denominator on a more consistent basis than sales revenue.
Yes. Use COGS and inventory balances from that same period, and enter the actual number of days in the period instead of 365.
No. A high ratio can reflect efficient sales, but it can also accompany low safety stock or stockouts. Compare it with service levels, margins and the business trend.
Ecommerce & pricing decision chain
Verify unit economics, set acquisition limits, test the offer, then check collection and inventory. Each stage continues into another real calculation.
With $360,000 annual COGS and average inventory of $60,000, turnover is 6.0× and approximate days held are 60.83. Compare the ratio over time; a higher number can also hide stockout risk.
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