How to Calculate Inventory Turnover?

A company’s inventory turnover ratio is a vital indicator of its operational efficiency. The average balance of inventory should be sold each year to keep up with demand and avoid excess costs from carrying too much product on hand, but if that number continues to grow then there may have been problems in terms of sales strength or customer service issues that need addressing before anything else can progress accordingly. The formula is: Inventory turnover = COGS / Average inventory balance for period

Calculate Inventory Turnover in seconds!

LiveFlow's Google Sheets Add-On is an easy-to-use tool to help you bring your financial data into your Google Sheet in a matter of seconds.

Capterra & LiveFlow
G2 & LiveFlow Reviews
LiveFlow reviews on Product Hunt
Book a demo