{
  "id": "inventory-turnover",
  "version": "ca1308ae21a9",
  "status": "published",
  "name": "Inventory Turnover Calculator",
  "question": "What is my inventory turnover?",
  "summary": "Computes the inventory turnover ratio, cost of goods sold ÷ average inventory, and days’ sales in inventory (DSI).",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/inventory-turnover-calculator",
  "markdown": "https://www.acalculator.org/finance/inventory-turnover-calculator.md",
  "kind": "function",
  "method": "Average inventory = (beginning inventory + ending inventory) ÷ 2 (ending inventory alone when no beginning is given). Inventory turnover = cost of goods sold ÷ average inventory. DSI = ending inventory ÷ cost of goods sold × 365.",
  "assumptions": [
    "Cost of goods sold covers one year, the period the two inventory balances start and end; DSI uses a 365-day year.",
    "Arithmetic is exact on the typed decimals; the ratios show to 2 decimals, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "cogs": {
        "title": "Cost of goods sold",
        "description": "The cost of the goods sold during the period, from the income statement.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000000000
      },
      "bi": {
        "title": "Inventory at the start",
        "description": "Inventory on the balance sheet at the start of the period. Leave empty to use the ending inventory alone.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "ei": {
        "title": "Inventory at the end",
        "description": "Inventory on the balance sheet at the end of the period.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "turnover": {
      "label": "Inventory turnover",
      "description": "Cost of goods sold ÷ average inventory: how many times the inventory sold through.",
      "format": "number"
    },
    "dsi": {
      "label": "Days’ sales in inventory (DSI)",
      "description": "Ending inventory ÷ cost of goods sold × 365.",
      "format": "number"
    },
    "average": {
      "label": "Average inventory",
      "description": "(Beginning inventory + ending inventory) ÷ 2, or the ending inventory when no beginning is given.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "cogs": 60000,
      "bi": 35000,
      "ei": 40000
    },
    "outputs": {
      "turnover": 1.6,
      "dsi": 243.33333333333334,
      "average": 37500
    },
    "text": "Cost of goods sold of $60,000.00 turned the inventory over 1.6 times, and the ending inventory of $40,000.00 covers 243.33 days of sales."
  },
  "examples": [
    {
      "given": {
        "cogs": 60000,
        "bi": 35000,
        "ei": 40000
      },
      "expect": {
        "turnover": 1.6,
        "dsi": 243.33333333333334,
        "average": 37500
      },
      "source": "OpenStax, Principles of Finance, 6.2 Operating Efficiency Ratios (inventory turnover = cost of goods sold ÷ average inventory; days’ sales in inventory = ending inventory ÷ cost of goods sold × 365; Clear Lake Sporting Goods). https://openstax.org/books/principles-finance/pages/6-2-operating-efficiency-ratios: 60,000 ÷ ((35,000 + 40,000) ÷ 2) = 1.6 times; 40,000 ÷ 60,000 × 365 = 243 days (rounded); exact 730/3 (Python Fraction)"
    },
    {
      "given": {
        "cogs": 500000,
        "bi": 80000,
        "ei": 120000
      },
      "expect": {
        "turnover": 5,
        "dsi": 87.6
      },
      "source": "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements (inventory turnover ratio = cost of sales ÷ average inventory for the period). https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements; hand calculation in content.mdx: 500,000 ÷ 100,000 = 5; 120,000 ÷ 500,000 × 365 = 87.6 days"
    },
    {
      "given": {
        "cogs": 60000,
        "ei": 40000
      },
      "expect": {
        "turnover": 1.5,
        "dsi": 243.33333333333334
      },
      "source": "hand calculation in content.mdx: 60,000 ÷ 40,000 = 1.5; 40,000 ÷ 60,000 × 365 = 243.33 days"
    }
  ],
  "sources": [
    "OpenStax, Principles of Finance, 6.2 Operating Efficiency Ratios: inventory turnover = cost of goods sold ÷ average inventory, average = (beginning + ending) ÷ 2, days' sales in inventory = ending inventory ÷ cost of goods sold × 365, and the Clear Lake Sporting Goods example (1.6 times; 243 days). https://openstax.org/books/principles-finance/pages/6-2-operating-efficiency-ratios (retrieved 2026-10-18)",
    "U.S. Securities and Exchange Commission, Beginners' Guide to Financial Statements: inventory turnover ratio = cost of sales ÷ average inventory for the period, the average being the current and previous balances added and divided by two. https://www.sec.gov/about/reports-publications/beginners-guide-financial-statements (retrieved 2026-10-18)"
  ],
  "related": [
    "accounts-receivable-turnover",
    "asset-turnover",
    "gross-margin",
    "current-ratio"
  ],
  "changelog": []
}