Inventory turnover calculator: how fast does your stock sell?

How it works

• Average stock = (start value + end value) / 2.
• Turnover = cost of goods sold / average stock. It tells you how many times a year you sell through your stock.
• Days to sell = days in the period / turnover. It tells you how long an item sits on the shelf.

Use cost, not sale price, for all three numbers. Take the start and end values from a real count, not from the system.

What is a good number?

It depends on what you sell. Food and drink turn over fast. Furniture and jewellery turn over slowly. Compare your number with your own last year, and with shops that sell the same things. A low number means cash is stuck on the shelf. A very high number can mean you run out of stock too often.

The end value must come from a count

If the stock value is wrong, the turnover is wrong. A yearly count gives you the real end value. Print the free inventory count sheet and count first.