Inventory Turnover
Calculate inventory turnover from cost of goods sold and average inventory.
How to use
- Enter COGS and average inventory for a matching period.
Capabilities and scope
The special runner evaluates COGS/averageInventory for the same period.
How it works
turnover=COGS/averageInventory.
Example
Annual COGS 1200 and average inventory 300 give four turns per year.
Useful for
- Compare inventory velocity across periods
Before you use it
- Different periods or inventory-averaging methods reduce comparability.
Frequently asked questions
Is higher turnover always better?
No. Stockouts, lead time, and margin also matter.