Inventory Turnover Calculator
Compute inventory turnover ratio and days of inventory on hand — the operational metrics that decide e-commerce cash flow.
Inputs
Inventory Health
—
Run calculation
Turnover ratio (annual)—
Days inventory on hand—
Verdict—
Inventory turnover is a cash-flow metric in disguise
High inventory turnover means cash gets recycled fast — every dollar of inventory generates more revenue per year. Apparel benchmarks: 4-6x. Consumer electronics: 6-9x. Grocery: 12-15x. Below your category benchmark, you have working capital trapped on shelves.
Frequently Asked Questions
What about safety stock?
Required for service-level reliability, but every excess unit beyond safety stock costs working capital. Optimize SKU-by-SKU, not in aggregate.
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