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# Inventory Turnover Ratio Calculator Online

Inventory turnover ratio means how a company succeeds in its field, which means they can convert inventory to sell. Calculate by this turnover ratio calculator.

How To Use The Calculator to Calculate Turn Over Ratio:

1. Input good sales number on Sold goods cost cell
2. Input starting balance on beginning inventory
3. Input ending balance on ending inventory
4. Input your company’s financial days in a year.

## Inventory Turnover Rate Calculator

Enter Sold goods cost, Beginning inventory, Ending inventory, Days in Year and hit anywhere

## How to Calculate Inventory Turnover Ratio Formula?

Use this formula to calculate inventory turnover ratio:

=Sold goods cost ÷ ((Beginning inventory + Ending inventory) ÷ 2)

Example:

=25000 ÷ ((20000 + 35000) ÷ 2)

=0.91

Our calculator also work based on that formula.

### Inventory Turnover Days Formula:

If you want to calculate Days in Inventory the follow the below formula:

=Days in year ÷ Turnover

Example:

=365 ÷ 0.91

=401.50

## How To Calculate Inventory Turnover Ratio in Excel?

If you want to calculate turnover ratio in excel then follow the below process.

At first design table like this: (Edit numeral values)

Turnover: =Sold goods cost / ((Beginning inventory + Ending inventory) / 2)

Days in inventory: =Days in year / Turnover

Example:

### What is A Good Inventory Turnover Ratio?

A good inventory turnover ratio number is between 5 to 10. It’s applicable to the automobile industry and other companies/organizations.

#### Which of The Following Industries has The Highest Average Inventory Turnover Ratio?

Retail, clothing stores and grocery has the highest average inventory turnover ratio.

#### What is A Good Inventory Turnover Ratio For Retail?

Between 2 to 4 is a good inventory turnover ratio for a retail.

#### What is A Good Inventory Turnover Ratio For Wholesale and Manufacturing Industry?

Between 6 to 12 is a good inventory turnover ratio for the wholesale and Manufacturing Industry and the pharmaceutical industry.