Sep 10, 2025 · Inventory turnover is calculated by dividing a company's cost of sales, or cost of goods sold (COGS), by the average value of its inventory over two recent consecutive periods.

Jun 27, 2025 · Learn how to calculate inventory turnover ratio & why it’s important. Plus, find examples, industry benchmarks & a free template.

Jul 26, 2024 · Inventory turnover is the rate that inventory stock is sold, or used, and replaced. The inventory turnover ratio is calculated by dividing the cost of goods by average inventory for the same …

What is Inventory Turnover? Inventory turnover, or the inventory turnover ratio, is the number of times a business sells and replaces its stock of goods during a given period. It considers the cost of goods …

Jul 25, 2025 · Inventory turnover is the average number of times in a year that a business replaces its inventory. Low turnover equates to a large investment in inventory.

Jun 20, 2025 · Inventory turnover is usually calculated as Cost of Goods Sold (COGS) divided by Average Inventory. In other words, it’s the number of times your business “turns over” its inventory in …

Learn what inventory turnover ratio is, how to calculate it, what a good ratio looks like, and how to improve it.