P&L Playbook for eCommerce by ex-SUGAR & Raymond Leader

Inventory Turnover Ratio Calculator

Use this tool to measure how efficiently your inventory is sold and replaced over a period.

Calculate Your Inventory Turnover

INR
INR
Days
Formula: Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

What is Inventory Turnover Ratio?

It's a metric that shows how many times inventory is sold and replaced during a specific timeframe. A higher turnover indicates efficient inventory management.

Why is This Important?

Monitoring turnover helps optimize stock levels, improve cash flow, and reduce holding costs by avoiding overstocking and obsolescence.