HOW IT IS CALCULATED
Calculate inventory turnover
Compare cost of goods sold with average inventory.
Instant resultClear formulaRuns locally
01Values
02COGS ÷ average inventory
03Result
500000 ÷ 100000 = 5× turnover
Turnover is a frequency ratio
A value of 5 means inventory equivalent to the average stock was cycled roughly five times over the measured period.
02
In short
What logic does the calculator use?
COGS ÷ average inventory
Example?
500000 ÷ 100000 = 5× turnover