What is the Inventory Turnover Calculator?

The Inventory Turnover Calculator is a helpful tool that measures how efficiently a business sells and replaces its inventory within a given period. By entering the Cost of Goods Sold (COGS) and the average inventory value, the calculator determines how many times inventory cycles through in a year and how many days inventory typically stays in stock. This helps businesses identify whether their inventory is moving slowly, at a normal pace, or very quickly so they can make better purchasing and sales decisions.

How to Use:

1. Enter Cost of Goods Sold (PKR): Input the total COGS for the period.
2. Enter Average Inventory (PKR): Enter the average value of inventory held during the period.
3. Click “Calculate”: The tool computes the inventory turnover ratio and days in inventory.
4. Review Result: The output displays turnover frequency, days inventory stays before being sold, and an interpretation such as slow, moderate, or fast turnover.