Inventory Turnover Calculator

About Inventory Turnover Calculator

The Inventory Turnover Calculator is used to calculate the inventory turnover.

Inventory Turnover Definition

In accounting, the inventory turnover is a measure of the number of times inventory is sold or used in a time period, such as a year. It is calculated as the cost of goods sold divided by the average inventory.

Inventory Turnover Formula

The inventory turnover calculation formula is as follows:

Inventory turnover = Average cost of goods sold / Average inventory

The formula for average inventory is as follows:

Average inventory = (Beginning inventory + Ending inventory) / 2

References

1. http://en.wikipedia.org/wiki/Inventory_turnover

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