Find how many times a year stock turns over and how many days goods sit in the warehouse, from COGS and average inventory.
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Enter the annual cost of goods sold (COGS) and the average inventory value. See the turnover and days in inventory.
Turnover shows how many times a year stock is sold and replenished. High turnover means fast sales; low turnover means capital tied up in stagnant stock.
Stock turnover 6.25× · Days in inventory 58 daysReal-estate and business calculations. Standard formulas for commissions, price per m², margins and markups. Instant in-browser calculation, no account, no data sent. Last updated: 11 July 2026 · gov.uk: business and self-employment.
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Turnover is found by dividing the cost of goods sold by the average inventory:
At a COGS of £500,000 and an average inventory of £80,000: turnover = 6.25× per year, that is 365 ÷ 6.25 ≈ 58 days in stock.
Stock (inventory) turnover is an indicator showing how many times a year a business sells and fully replenishes its stock. The higher it is, the faster the goods move.
Divide the annual cost of goods sold (COGS) by the average inventory value. For example, £500,000 ÷ £80,000 = 6.25 turns per year.
It depends on the sector: grocery retail has very high turnover (perishable goods), while luxury goods have low turnover. Compare with your sector average.
They are the average number of days goods sit in stock before being sold. Calculated as 365 divided by turnover. At 6.25 turns: 365 ÷ 6.25 ≈ 58 days.
Usually as the average of the inventory at the start and end of the period: (opening + closing) ÷ 2. For more precision you can use the monthly average.
High turnover frees up capital and cuts the risk of unsold goods, but too high can mean insufficient stock and lost sales. A balance is sought.
Through smaller, more frequent orders, clearing dead stock, better demand forecasting, promotions for slow goods and negotiating better terms with suppliers.
Correctly on the cost of goods sold (COGS), because inventory is also valued at cost. Using sales (which include markup) artificially inflates the turnover.