Inventory Turnover Calculator: calculate inventory turnover for your business. Formula, benchmarks, and practical tips included.
Inventory turnover = COGS ÷ Average inventory
Days inventory outstanding (DIO) = 365 ÷ Inventory turnover
Worked example: Annual COGS 4,800,000. Opening inventory 600,000, closing inventory 400,000. Average inventory = 500,000. Turnover = 4,800,000/500,000 = 9.6×. DIO = 365/9.6 = 38 days. Stock is sold and replaced every 38 days on average.