Inventory Turnover Calculator
Analyze your inventory turnover ratio and benchmark it against your industry standards.
Your industry
Period data
Inventory value on the first day of the period (€)
Inventory value on the last day of the period (€)
Net revenue or goods consumed over the period (€)
Enter your data
Annual turnover ratio
—
turns/year
Days of coverage
—
days of stock
Benchmarks — Fashion Retail
4x
Minimum threshold
6x
Ideal ratio
10x
Maximum ratio
📦 Track your inventory with QR codes
K-QRCODE lets you attach a QR code to every SKU for real-time access to its history, stock level, and reorder point.
Create my inventory tracking QR codesEverything you need to know about inventory turnover
How to calculate your inventory turnover rate?
The inventory turnover rate is calculated by dividing revenue (or cost of goods sold) by average inventory over the period, then annualising the result. Formula: Rate = (Revenue / Average inventory) × (12 / period in months). A high rate indicates efficient management; a low rate may signal overstocking or sales issues.
What are days of inventory cover?
Days of cover (DIO — Days Inventory Outstanding) represent the number of days your current stock can cover sales without replenishment. Formula: Days = 365 / Annual turnover rate. A key indicator for anticipating stockouts and optimising supplier orders.
What are the benchmarks by sector?
Standards vary considerably by industry: hospitality targets 26 to 104 turns/year (fresh stock), fashion retail between 4 and 10×/year, food retail between 12 and 30×/year, pharmacy between 8 and 18×/year. This calculator integrates these sector benchmarks to position you immediately.
How to improve your inventory turnover?
Several levers are available: reducing replenishment lead times, setting up automatic reorder points, identifying slow-moving references and clearing them, and above all precisely tracking each reference. K-QRCODE traceability QR codes provide real-time stock history for every reference.
Frequently asked questions
What's the difference between revenue and cost of goods for this calculation?
Using revenue (excluding VAT) is simpler but less precise. Using cost of goods sold (COGS) is more rigorous and recommended for sector comparisons, as it excludes the margin.
My rate is very high — is that always good?
Not necessarily. A rate that is too high (beyond your sector's upper threshold) may indicate frequent stockout risk, underestimated safety stock levels, or poorly anticipated supplier lead times. The optimum sits within the 'ideal' zone displayed per sector.
Does this calculator work for multiple warehouses or depots?
This calculator is designed for a single entity or depot at a time. For multi-site management, add together the stock and revenue for each site, or calculate separately per depot to identify performance gaps.