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Inventory turnover calculator

Turns and days inventory outstanding from cost of goods sold and average stock value.

Average inventory
$150,000.00
Turns in period
8
Annualised turns
8
Days inventory outstanding
45.6 days
  • Opening and closing values differ sharply; a two-point average may misstate the period.

Methodology

Average inventory = (opening inventory + closing inventory) ÷ 2, both at cost. Turns for the period = cost of goods sold ÷ average inventory. Annualised turns scale the period result by 365 ÷ period length. Days inventory outstanding = period length ÷ turns for the period — the average time a unit of stock sits before it sells. Using a two-point average masks intra-period swings; a monthly average is more reliable for seasonal ranges. Excluded: consignment and vendor-managed stock ownership rules, in-transit inventory, obsolescence write-downs, and any distinction between fast and slow lines. You supply every input: this site holds no live freight rates, transit times, or duty tables, and never estimates them for you. Results are an orientation model, not a quotation, and not customs, tax, insurance, or financial advice. Confirm duty rates, VAT treatment, and carrier terms with the relevant authority or provider before relying on them.

These calculations are informational estimates based on headline rates and transparent assumptions — not tax, accounting, or legal advice. Verify with a qualified local advisor before relying on the results.

Data limitations

  • Logistics figures are operator-supplied inputs, not market data. GeoBusinessIQ holds no freight rates, transit times, capacity, or throughput data and does not estimate them — every result reflects only the figures you enter.

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