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 …

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

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.

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 …

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

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.

Aug 8, 2025 · In this guide, I’ll break down how to calculate inventory turnover the right way, why it’s not as simple as “higher is better,” where most people trip up, and how to actually use your …

Jun 20, 2025 · Inventory turnover is usually calculated as Cost of Goods Sold (COGS) divided by Average Inventory. In other words, it’s the number of times your business “turns over” its …

Feb 24, 2025 · To calculate inventory turnover, you’ll need to understand two additional metrics: Cost of Goods Sold (COGS): The total cost of your products sold during a set period, including …

Master the art of calculating inventory turns. Dive into formulas and step-by-step procedures. Learn to interpret the results to make strategic decisions. Unlock the advantages of optimizing …