Inventory Turnover Calculator

Inventory turnover = COGS / Average Inventory. Higher is better — it means less cash tied up in stock.

What this calculator does

Retail average: 4–6× per year. Grocery: 20+×. Luxury goods: 1–2×.

Frequently asked questions

What is a good inventory turnover ratio?

Industry-dependent. Grocery: 20+. Retail: 4–6. Auto dealers: 8–12. Furniture: 3–4.