Operations
Inventory Turnover Calculator
Work out inventory turnover and days of stock, then compare them with U.S. Census figures for 12 retail and wholesale industries.
Result
Your turnover vs Census industry figures
Annualized COGS ÷ average inventory; industries are 2022 whole-industry totals.
Inventory turnover by industry (U.S. Census)
| Industry | 2022 | 2013–22 range | You vs industry |
|---|---|---|---|
| Grocery stores | 13.0x | 11.8–13.0x | 0.51× |
| Wholesale, nondurable goods | 10.4x | 9.0–11.5x | 0.64× |
| Health and personal care stores | 7.0x | 5.7–7.1x | 0.95× |
| General merchandise stores | 6.9x | 6.2–7.1x | 0.97× |
| Online and mail-order retailers | 6.9x | 6.4–7.8x | 0.97× |
| Motor vehicle and parts dealers | 6.4x | 4.1–6.6x | 1.04× |
| Electronics and appliance stores | 5.9x | 5.4–6.4x | 1.13× |
| Wholesale, durable goods | 5.4x | 5.4–5.9x | 1.24× |
| Building material and garden stores | 4.3x | 4.3–4.8x | 1.55× |
| Furniture and home furnishings stores | 3.4x | 3.4–4.0x | 1.96× |
| Clothing and accessories stores | 2.9x | 2.5–3.1x | 2.3× |
| Sporting goods, hobby, music and book stores | 2.5x | 2.3–3.0x | 2.67× |
Turnover norms differ several-fold by industry: the Census figures run from 2.5x for sporting goods, hobby, music and book stores to 13.0x for grocery stores a year, so one good-or-bad scale would mislead.
How to use it
- Enter COGS and either beginning plus ending inventory or average inventory directly, then choose annual, quarterly, or monthly period. Use cost values rather than revenue so the turnover ratio is not inflated by markup.
- Pick the industry closest to yours, then read turnover ratio, DSI, annualized turnover, and the rating against that industry's U.S. Census figure. For scale, in 2022 grocery stores turned their stock 13.0 times, online and mail-order retailers 6.9 times, and clothing stores 2.9 times.
- Interpret the rating with context: well below your industry usually points to slow-moving lines or overbuying, while well above it can mean stock is so thin you are missing sales, so check fill rates before celebrating. A rising DSI trend usually means demand is slowing or purchasing discipline is weakening.
- Use the result to decide whether to cut purchase orders, clear old stock, rebalance SKUs, or add safety stock. If turnover looks high overall but certain categories still age badly, manage by SKU group instead of celebrating a blended average.
- Re-run monthly and around seasonal inventory builds. Track DSI and annualized turnover by category over time because the early warning is usually a trend change, not a single bad month.
Questions people usually ask
What is a good inventory turnover ratio?
It depends on the industry. U.S. Census figures for 2022 put grocery stores at 13.0 turns a year, general merchandise stores and online retailers at 6.9, furniture stores at 3.4 and clothing stores at 2.9. Pick your industry in the calculator to compare, and track your own history too. Higher turnover frees cash, but too high can mean stockouts.
What is days sales of inventory (DSI)?
DSI tells you how many days it takes on average to sell your entire inventory. Lower DSI means faster sales. Calculate it as 365 divided by your turnover ratio.
Should I use COGS or revenue for turnover?
Use COGS (cost of goods sold) for accuracy. Revenue includes markup, which inflates the ratio and makes comparisons unreliable.
Can inventory turnover be too high?
Yes. Very high turnover can indicate understocking, leading to stockouts and lost sales. Balance efficiency with adequate supply.
Is this tool free and private to use?
Yes. AI Biz Hub tools are free, no-signup browser tools. Inputs stay in your browser unless you choose to share a URL.
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Background on the Inventory Turnover Calculator
- Statistics 15 E-Commerce Statistics
E-commerce statistics on online sales share, growth and cart abandonment, each from a named primary source: the U.S. Census Bureau or Baymard Institute.
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Use it from code
The same calculation as a JavaScript module you can import. It runs where you import it, with no request, key or rate limit.
import { compute } from "https://aibizhub.io/engines/inventory-turnover-calculator.js";Input and output contract, TypeScript types and the guide for agents.