Turn Over Ratio

Inventory Turnover Ratio is a ratio showing how many times a company's inventory is sold and replaced over a certain period of time.  A high turnover ratio is a positive indicator that products are not being left to deteriorate. An example of low turnover may be because of overstocking, obsolescence (products being obselete) or problems with the product itself or marketing efforts.  The reverse of this may indicate inadiquate inventory levels.  Please note that different industries will have different ratios due to the different nature of product turnover. 

$   Turnover Ratio    

The Average Inventory figure is obtained using the company's balance sheet at the start and end of the period, or the average of multiple periods throughout the cycle. 

  Cost of Goods Sold: $   Turnover Ratio    
  Average Inventory (Start): $      
  Average Inventory (End): $      
Average Inventory over 1 Year Calculator: (add the individual month totals to automatically calculate)
  Cost of Goods Sold:  
  Inventory: Month 1: $  
  Month 2: $  
  Month 3: $  
  Month 4: $   Turnover Ratio  
  Month 5: $    
  Month 6: $  
  Month 7: $  
  Month 8: $  
  Month 9: $  
  Month 10: $  
  Month 11: $  
  Month 12: $