# Inventory Turnover Calculator

**
Instructions:
**
You can use our Inventory Turnover Calculator, by providing the Cost of Goods Sold \((COGS)\), the current inventory and the previous inventory in the form below:

## Inventory Turnover Calculator

More about the
*
inventory turnover
*
so you can better use the results provided by this solver. The inventory turnover is the ratio between the cost of goods sold and the average inventory. This ratio is a measure of asset management, and it indicates the number many times a firm turns its inventory. It is computed using the following formula:

Observe that, and this is a point that often brings confusion, the formula uses the average inventory, and just the last inventory.

### What is the ideal inventory turnover ratio for a company?

The Inventory Turnover Ratio is a commonly used financial ratio to measure efficiency in asset management. You can find other financial ratio calculators in our site, such as our current ratio , quick ratio , and our inventory turnover calculator.

Observe that the Cost of Goods Sold are also used to compute the Days' Sales in Inventory , another useful efficiency ratio.