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Inventory Turnover and Average Stock Days

Compare period cost of goods sold with beginning and ending stock to estimate turns and inventory days.

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Calculator inputs

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How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

Cost of goods sold of 120000 and stock levels of 10000 and 20000 produce average stock of 15000, eight turns and 45 days for a 360-day period.

Average stock = (begin + end)/2; turns = COGS/average stock; days = period/turns.

Worked example

Enter these known values and leave the other values blank.

Cost of Goods Sold
120000 USD
Beginning inventory
10000 USD
Ending inventory
20000 USD
Period
360 days
Inventory days
45
Inventory turnover
8
Average inventory
15000 USD

Assumptions and limitations

  • Use inventory measured at cost and cost of goods sold for the same period. Two-point average stock can miss seasonal variation.
  • Positive beginning and ending inventory, positive cost of goods sold and a positive period are required by the retained model. These give a finite positive turnover and inventory-day result.
  • Amounts use a single consistent currency. Currency selector conversion factors are a captured static snapshot; they are not current FX quotes.
  • Clear the unknown field before solving an inverse. Locks keep known values fixed; contradictory locked values require correction.
  • Domain review limits calculations to the documented finite scenario; original captured equations, inverses and unit options are retained.

Common questions

How should I interpret the example?

Cost of goods sold of 120000 and stock levels of 10000 and 20000 produce average stock of 15000, eight turns and 45 days for a 360-day period.

References

Require the documented finite model domain. Use positive cost of goods sold for finite inventory days. Period length must be positive. Average inventory must be positive. Inventory days must be positive.

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