Inventory Turnover Ratio Calculator

Enter the cost of goods sold, beginning inventory, and ending inventory into the calculator. The calculator will evaluate and display the inventory turnover ratio.

Inventory Turnover Ratio Formula

The following formula is used to calculate an inventory turnover ratio.

I = COGS / [(BI + EI)/2]

  • Where I is the inventory turnover ratio
  • COGS is the cost of goods sold
  • BI is the beginning inventory
  • EI is the ending inventory

Inventory Turnover Ratio

The inventory turnover ratio is a measure of how quickly a business can turn inventory into sales. The better the turnover ratio, the better the company is at converting on sales and moving inventory once it’s on the shelf.

inventory turnover ratio calculator

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