Inventory Turnover Calculator: 5.0 times/year
With Cost of Goods Sold of $100 and Average Inventory of $20, the result is 5.0 times/year.
Inventory Turnover Calculator
5.0 times/year
How This Works
This measures how many times per year a balance (inventory or receivables) is fully cycled through — higher turnover generally means more efficient use of that asset.
Formula
Turnover = Cost of Goods Sold ÷ Average Inventory
Example
$500,000 COGS against $80,000 average inventory is a turnover of 6.25 times per year, or about 58 days of inventory on hand.
Frequently Asked Questions
What is the result with these numbers?
5.0 times/year.