Step-by-step instructions
- Enter or select Cost of goods sold.
- Enter or select Average inventory.
- Tap Calculate.
- Review the result shown directly below the calculator.
Inventory Turnover Calculator
Calculate inventory turnover ratio.
How to use the Inventory Turnover Calculator
Calculate inventory turnover ratio.
What the inputs mean
- Cost of goods sold
- Enter the monetary amount shown by the field label.
- Average inventory
- Enter the value requested by this field label.
Formula or calculation method
Cost of goods sold is divided by Average inventory. The calculator formats the quotient as the requested result.
Example
For example, entering 100 for Cost of goods sold and 4 for Average inventory gives a result of 25.
How to understand the result
The result is the rate, ratio, or amount produced by dividing the first quantity by the second.
Tip: Keep all values in compatible units and use values from the same time period when the calculator compares two amounts.