Sep 10, 2025 · Inventory turnover is calculated by dividing a company's cost of sales, or cost of goods sold (COGS), by the average value of its inventory over two recent consecutive periods.

Aug 8, 2025 · In this guide, I’ll break down how to calculate inventory turnover the right way, why it’s not as simple as “higher is better,” where most people trip up, and how to actually use your turnover data …

Jun 27, 2025 · In this guide, find out how to calculate inventory turnover, what your ratio means, and how to improve your bottom line. Learn industry benchmarks, and get a free template to track …

You can calculate the inventory turnover ratio by dividing the inventory days ratio by 365 and flipping the ratio. In this example, the inventory turnover ratio = 1 / (73/365) = 5.

Feb 7, 2024 · Simply put, the inventory turnover ratio measures the efficiency at which a company can convert its inventory purchases into revenue. The inventory turnover ratio is calculated by dividing …

Jul 26, 2024 · Inventory turnover is the rate that inventory stock is sold, or used, and replaced. The inventory turnover ratio is calculated by dividing the cost of goods by average inventory for the same …

Dec 16, 2025 · A high turnover means inventory sells and replenishes quickly, while a low rate could point to excess stock, weak demand, or poor purchasing decisions. Understanding your inventory …

Feb 24, 2025 · Learn how to calculate inventory turnover, what it is exactly, why it matters, and more with this AMS Fulfillment Guide. Learn with us.

Nov 13, 2024 · The inventory turnover ratio measures how fast a company sells inventory. Learn how to calculate it, see some examples, and get key takeaways.

Jun 19, 2024 · To calculate inventory turnover, simply divide your cost of goods sold (COGS) by your average inventory value.