Inventory Turnover Ratio Calculator
Analyze your inventory efficiency, benchmark against industry standards, and discover actionable insights to optimize working capital and reduce carrying costs.
The Inventory Turnover Formula
ITR = COGS / Average Inventory
Where COGS = Cost of Goods Sold, Average Inventory = (Beginning + Ending) / 2
What Does Inventory Turnover Reveal?
Understanding how efficiently your inventory is being used
Low Turnover = Excess Stock
Indicates slow-moving inventory, higher carrying costs, and capital tied up in unsold goods.
Too High = Stockout Risk
May indicate insufficient inventory levels, leading to stockouts and lost sales opportunities.
Optimal ITR = Balance
The right turnover rate ensures you meet demand while minimizing holding costs and obsolescence.
Built for Every Industry
Our universal ITR calculator provides industry-specific benchmarks
Manufacturing
Analyze raw materials, WIP, and finished goods turnover separately
Retail
Compare against retail benchmarks and seasonal patterns
E-commerce
Track fast-moving inventory and optimize fulfillment
Distribution
Benchmark warehouse inventory efficiency
Wholesale
Analyze bulk inventory movement and capital efficiency
Food & Beverage
Critical freshness and perishability analysis
Comprehensive Inventory Turnover Analysis
Our calculator provides actionable insights to optimize your inventory performance
Inventory Turnover Ratio
Calculate how many times your inventory is sold and replaced over a period, indicating sales efficiency.
Days Sales of Inventory
Know exactly how many days it takes to convert inventory into sales - critical for cash flow planning.
Industry Benchmarking
Compare your performance against industry benchmarks to understand where you stand and where to improve.
Financial Impact Analysis
Understand carrying costs, capital tied up, and potential savings from inventory optimization.
Category Breakdown
For manufacturers: separate analysis of raw materials, work-in-progress, and finished goods turnover.
Actionable Recommendations
Get prioritized action plans with specific steps to improve your inventory turnover performance.
How It Works
Get your inventory turnover analysis in just a few steps
Select Industry
Choose your industry type for accurate benchmarking
Enter Financials
Input COGS, beginning and ending inventory values
Add Breakdown
Optionally break down by inventory category
Get Results
Receive ITR, DSI, benchmarks, and action plan
Why Businesses Trust Our ITR Calculator
Who Uses Inventory Turnover Analysis?
ITR analysis benefits businesses across industries
CFOs & Finance Teams
Optimize working capital and cash flow
Supply Chain Directors
Balance inventory across the supply chain
Operations Managers
Reduce carrying costs and improve efficiency
Inventory Planners
Set optimal stock levels and reorder points
Business Owners
Understand inventory health and profitability
Warehouse Managers
Optimize storage and turnover performance
Need automated inventory turnover tracking?
Our Manufacturing IQ ERP provides real-time inventory analytics across your entire business.