How it works
Average inventory=(opening+closing)/2; turnover=annual COGS/average inventory; days=365/turnover.
Input definitions
- Annual cost of goods sold
- Enter the value in the labeled unit.
- Opening inventory at cost
- Enter the value in the labeled unit.
- Closing inventory at cost
- Enter the value in the labeled unit.
A worked example
- Annual cost of goods sold
- 120000
- Opening inventory at cost
- 10000
- Closing inventory at cost
- 14000
Assumptions & limits
Single-currency planning model using entered rates; two-decimal half-up currency rounding. No taxes, regulatory APR, live quote or investment-return prediction unless explicitly stated.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-17. Content checked against the stated method and examples. Our verification approach.
Common questions
Are tax, overhead and refunds included automatically?
Only the costs and rates explicitly entered or described in the formula are included. Use consistent currencies and periods, and check what your own accounting policy requires.
How does the Inventory turnover and days inventory tool work?
Average inventory=(opening+closing)/2; turnover=annual COGS/average inventory; days=365/turnover.
What are the assumptions and limits of Inventory turnover and days inventory?
Single-currency planning model using entered rates; two-decimal half-up currency rounding. No taxes, regulatory APR, live quote or investment-return prediction unless explicitly stated.