- 1 Inventory Turnover Calculator
- 2 How To Calculate Inventory Turnover Ratio Formula
- 3 How To Calculate Inventory Turnover Ratio in Excel
- 3.1 What is A Good Inventory Turnover Ratio?
- 3.2 Is this calculator helpful?
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:
- Input good sales number on Sold goods cost cell
- Input starting balance on beginning inventory
- Input ending balance on ending inventory
- Input your company’s financial days in a year.
How To Calculate Inventory Turnover Ratio Formula
Use this formula to calculate inventory turnover ratio:
=Sold goods cost ÷ ((Beginning inventory + Ending inventory) ÷ 2)
=25000 ÷ ((20000 + 35000) ÷ 2)
Our calculator also work based this rule.
Inventory Turnover Days Formula:
If you want to calculate Days in Inventory the follow the below formula:
=Days in year ÷ Turnover
=365 ÷ 0.91
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)
|1||Inventory Turnover Calculator|
|5||Days in Year:||365|
|8||Days in inventory:||=B5/B6|
Turnover: =Sold goods cost / ((Beginning inventory + Ending inventory) / 2)
Days in inventory: =Days in year / Turnover
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 wholesale and Manufacturing Industry and the pharmaceutical industry.