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Inventory Turnover Calculator
Divide COGS by average inventory to see how many times capital 'turns over' annually, quickly identifying overstock.
Input Parameters
$24,000
Average Inventory Value
5.0×
Inventory Turnover
{73} Days
Days Sales of Inventory (DSI)
$24,000
Tied-up Capital
Industry Benchmarks
| Category | Healthy Turnover (Annual) | Target DSI | Your Status |
|---|---|---|---|
| Consumer Electronics (3C) | ≥ 6× | ≤ 60 {}Days | ⚠️ Close to target |
| Home / Kitchen | ≥ 4× | ≤ 90 {}Days | ✅ Met (Target {4}×) |
| Apparel / Shoes | ≥ 4× | ≤ 90 {}Days | ✅ Met (Target {4}×) |
| Toys / Games | ≥ 4× | ≤ 90 {}Days | ✅ Met (Target {4}×) |
| Tools / Hardware | ≥ 3× | ≤ 120 {}Days | ✅ Met (Target {3}×) |
| Sports / Outdoors | ≥ 3× | ≤ 120 {}Days | ✅ Met (Target {3}×) |
Solutions to Improve Turnover
| Solution | Scenario | Expected Effect |
|---|---|---|
| Shorten restock batches | MOQ allows small batches | Reduce tied-up capital by 20–30% |
| Set clearance prices | Slow-moving SKUs > 90 days | Quickly recover cash |
| Optimize ads | Low sales but healthy margins | Boost sales velocity, lower DSI |
| Move to 3PL | High FBA long-term fees | Reduce storage cost pressure |
💡 Higher turnover means better capital efficiency. Cross-border e-commerce target: Annual turnover ≥ 4× (DSI ≤ 90 days). FBA inventory over 365 days incurs long-term storage fees.
Related Tools
📅 Restock Planner💰 Profit Calculator🏷️ Amazon FBA Size Tiers↩️ Return Cost Impact💬 Feedback
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