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Inventory Turnover Calculator

Inventory turnover = COGS ÷ average inventory. Higher is generally better; lower locks up cash.

Calculator
Result
8.0× per year
Inventory turnover8.00×
Days of inventory46 days
Benchmark (supermarket)15-25× / yr
Benchmark (fashion)3-6× / yr

Slow turnover ties up cash. Fast turnover risks stockouts. Aim for the sector benchmark.

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Why turnover beats almost every other inventory KPI

A high turnover number means your stock is doing real work. A low number means stock is sitting and ageing, risk of dead stock, obsolescence, waste.

Veira reports turnover per SKU, category, branch and time window.

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Worked examples

COGS 12m, avg inv 1.5m
  • Turnover = 8× · Days = 46 → healthy retail

Frequently asked questions

How do I find average inventory?
Add opening and closing inventory, divide by 2. Or use the 13-week rolling average.
Sector benchmarks?
Supermarket 15-25×, pharmacy 8-12×, fashion 3-6×, electronics 6-10×.
Is higher always better?
No. Over-high turnover causes stockouts. Find the sweet spot.
Days of inventory is what?
365 ÷ turnover, how many days of stock you hold on average.
Does Veira track turnover?
Yes, per SKU and per branch, weekly.

Doing this by hand every time? Veira runs the same calculation automatically on every sale, no spreadsheet required.

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