Sep 10, 2025 · Inventory turnover is calculated by dividing a company's cost of sales, or cost of goods sold (COGS), by the average value of its inventory over two recent consecutive periods.

You can calculate the inventory turnover ratio by dividing the inventory days ratio by 365 and flipping the ratio. In this example, the inventory turnover ratio = 1 / (73/365) = 5.

Jun 27, 2025 · In this guide, find out how to calculate inventory turnover, what your ratio means, and how to improve your bottom line. Learn industry benchmarks, and get a free template to …

Jun 19, 2024 · To calculate inventory turnover, simply divide your cost of goods sold (COGS) by your average inventory value.

Feb 7, 2024 · Simply put, the inventory turnover ratio measures the efficiency at which a company can convert its inventory purchases into revenue. The inventory turnover ratio is calculated by …

Jul 15, 2024 · Step-by-step explanation and example of how to calculate inventory turns or turnover rate. Video explanation also provided.

Aug 8, 2025 · Inventory turnover is the rate at which you sell and replace inventory within a given period of time. The basic calculation is the cost of goods sold (COGS) divided by average …

Jun 20, 2025 · Learn how to calculate inventory turnover and understand what is a good inventory turnover Ratio. See practical tips to improve turnover, free up tied-up cash, and avoid stockouts.

Apr 11, 2025 · To calculate inventory turnover, you can use the following formula: inventory Turnover Ratio = cost of goods Sold / average Inventory. The cost of goods sold represents …

Apr 7, 2025 · The inventory turnover ratio is a critical metric for assessing the efficiency of inventory management. This guide covers essential formulas and steps for calculating …