Inventory turnover
How many times a year your stock turns over, and how many days it sits on the shelf.
How it works
Turnover = cost of goods sold / average stock. Days in stock = 365 / turnover. Higher turnover frees up cash.
Results are for guidance only and do not replace professional advice.
Worked example
With the default values:
- Yearly cost of goods sold320000
- Stock at start of year48000
- Stock at end of year56000
you get:
- Inventory turnover6.15 × per year
- Days in inventory59 days
- Average inventory€52,000.00
- Inventory change16.7 %
Frequently asked questions
How does the “Inventory turnover” tool work?
Turnover = cost of goods sold / average stock. Days in stock = 365 / turnover. Higher turnover frees up cash.
What do I need to enter?
Just fill in: yearly cost of goods sold, stock at start of year, stock at end of year. The result updates as you type.
Can you give an example?
Yearly cost of goods sold: 320000; Stock at start of year: 48000; Stock at end of year: 56000 → Inventory turnover: 6.15 × per year; Days in inventory: 59 days.
Is this calculator free, and is my data private?
Yes. HOD Calc is completely free with no sign-up. The calculation runs in your browser: nothing you type is sent or stored.