Inventory turnover ratio means how a company succeeds in its field, which means they can convert inventory to sell. Calculate by this turnover ratio calculator.
How To Use The Calculator to Calculate Turn Over Ratio:
- Input good sales number on Sold goods cost cell
- Input starting balance on beginning inventory
- Input ending balance on ending inventory
- Input your company’s financial days in a year.
Table of Contents:
Inventory Turnover Rate Calculator
Enter Sold goods cost, Beginning inventory, Ending inventory, Days in Year and hit anywhere
Inventory Turnover Ratio Result | |
---|---|
Turnover: | |
Days in inventory: |

How to Calculate Inventory Turnover Ratio Formula?
Use this formula to calculate inventory turnover ratio:
=Sold goods cost ÷ ((Beginning inventory + Ending inventory) ÷ 2)
Example:
=25000 ÷ ((20000 + 35000) ÷ 2)
=0.91
Our calculator also work based on that formula.
Inventory Turnover Days Formula:
If you want to calculate Days in Inventory the follow the below formula:
=Days in year ÷ Turnover
Example:
=365 ÷ 0.91
=401.50
How To Calculate Inventory Turnover Ratio in Excel?
If you want to calculate turnover ratio in excel then follow the below process.
At first design table like this: (Edit numeral values)
A | B | |
---|---|---|
1 | Inventory Turnover Calculator | |
2 | Sales: | 25000 |
3 | Beginig inventory: | 20000 |
4 | Ending inventory: | 35000 |
5 | Days in Year: | 365 |
6 | Turnover: | =B2/((B3+B4)/2) |
8 | Days in inventory: | =B5/B6 |
Turnover: =Sold goods cost / ((Beginning inventory + Ending inventory) / 2)
Days in inventory: =Days in year / Turnover
Example:

What is A Good Inventory Turnover Ratio?
A good inventory turnover ratio number is between 5 to 10. It’s applicable to the automobile industry and other companies/organizations.
Which of The Following Industries has The Highest Average Inventory Turnover Ratio?
Retail, clothing stores and grocery has the highest average inventory turnover ratio.
What is A Good Inventory Turnover Ratio For Retail?
Between 2 to 4 is a good inventory turnover ratio for a retail.
What is A Good Inventory Turnover Ratio For Wholesale and Manufacturing Industry?
Between 6 to 12 is a good inventory turnover ratio for the wholesale and Manufacturing Industry and the pharmaceutical industry.