Inventory Turnover Calculator: improving Your Stock Levels

Inventory turnover is a key metric that measures how efficiently a business manages its inventory. It tells you how many times your inventory is sold and replaced over a specific period.

Why Inventory Turnover is Important

A high turnover ratio generally indicates strong sales and efficient inventory management, while a low ratio may suggest overstocking or weak demand.

Calculating Inventory Turnover

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

How to Improve Your Ratio

• improve Ordering: Use data to predict demand more accurately.
• Liquidate Slow-Moving Stock: Offer discounts or bundles to move old inventory.
• Improve Marketing: Drive more sales for your existing products.

Internal Links

• Calculate your COGS first