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Inventory Turnover Calculator

In one line: See how fast each SKU converts to cash, and how much capital is frozen on the shelf right now.

When to use

  • Identifying slow-moving SKUs that tie up working capital
  • Comparing turnover across products to prioritize markdowns
  • Benchmarking your inventory health against industry norms

Inputs

Field Notes
Monthly sales Units sold per month (or revenue, if using value basis)
On-hand stock Current units in inventory
Unit cost Procurement or landed cost per unit

Outputs

  • Turnover ratio: how many times stock cycles per period
  • Days of inventory (DIO): average days a unit sits before selling
  • Tied-up capital: on-hand units × unit cost
  • Benchmark comparison: your DIO versus an industry reference

Steps

  1. Open https://www.niceggie.com/tools/inventory-turnover
  2. Enter monthly sales, on-hand stock, and unit cost
  3. Read the turnover ratio and days of inventory
  4. Compare against the benchmark and flag SKUs sitting too long

Turnover benchmarks

  • DIO > 90 days: slow mover — capital is stuck, consider markdown or clearance
  • DIO 30–90 days: healthy range for most cross-border SKUs
  • DIO < 30 days: fast mover — protect it with tight restock planning

FAQ

Should I use units or revenue for monthly sales?

Either works as long as you stay consistent: pair unit sales with on-hand units, or revenue-based sales with inventory value. Mixing the two distorts both the turnover ratio and DIO.

Why is high turnover not always good?

Very high turnover can signal you are under-stocked and risking stockouts during the cross-border lead time. Read turnover alongside your reorder plan, not in isolation.

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