Inventory turnover calculator using stock cost
Calculate turns from cost of goods sold and average inventory value for the same period.
Formula and worked example
Cost of goods sold ÷ average inventory value at cost.
Illustrative example: 120,000 in period costs ÷ 30,000 average stock cost = 4 turns for that period.
Before you use the result
- Enter both amounts in the same currency and on the same cost basis. Sales revenue and retail ticket prices are not substitutes for cost.
- A simple average is (opening inventory cost + closing inventory cost) ÷ 2. More frequent observations may better represent a seasonal or uneven period.
- The result is turns for your chosen period, not automatically annual turns. This standalone tool uses your inputs; headoffis Analytics does not calculate inventory valuation, cost of goods sold or profit.
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