Business
Days inventory outstanding
Translate inventory levels into estimated days of sales coverage.
Calculators / Business / Inventory turnover
Inventory turnover calculator
Calculate cost-based inventory turnover, average inventory, and estimated days inventory outstanding.
On this page
Inventory turnover4×
Average inventory30,000
Estimated days inventory91.25days
Calculator controls
How to calculate
Calculate cost-based inventory turnover, average inventory, and estimated days inventory outstanding.
Average inventory = (opening + closing) ÷ 2; turnover = cost of goods sold ÷ average inventory; days inventory = average inventory ÷ cost of goods sold × 365.
Worked example
Cost of goods sold: 120000; Opening inventory at cost: 20000; Closing inventory at cost: 40000.
Inventory turnover: 4 ×; Average inventory: 30,000 ; Estimated days inventory: 91.25 days.
Assumptions and limits
Use inventory and cost of goods sold on the same cost basis and period. Seasonal businesses may need more frequent inventory averages.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
Turnover compares cost of goods sold with average inventory valued on the same cost basis.
When this tool is useful
Estimate how often average inventory was sold during a period.
Understanding your inputs
| Input | What to enter |
|---|---|
| Cost of goods sold | Enter a number of at least 0 and no more than 1000000000000. |
| Opening inventory at cost | Enter a number of at least 0 and no more than 1000000000000. |
| Closing inventory at cost | Enter a number of at least 0 and no more than 1000000000000. |
Frequently asked questions
Can I substitute sales revenue for cost of goods sold?
That produces a different ratio influenced by markup. Use cost of goods sold when inventory is valued at cost.