Inventory turnover is cost of goods sold divided by average inventory, and its reciprocal is how many days of cash are sitting on the shelf. Read alongside the cash conversion cycle it shows how long money is tied up between paying a supplier and being paid by a customer.
Your figures (annual)
Enter one SKU family, brand, or product category at cost value.
Bulk calculate from CSV Pro
Compare turnover and cash cycle across every product line or category at once with a CSV upload and downloadable results. Available on Pro and Pro+.
Upgrade to Pro for bulk CSV →Frequently asked questions
How is inventory turnover calculated?
Inventory turnover is cost of goods sold divided by average inventory value (at cost). It tells you how many times you sell and replace your stock in a period. Days inventory outstanding is simply 365 divided by turnover — the average number of days a unit sits before it sells.
What is GMROI?
GMROI (gross margin return on investment) is gross profit divided by the average inventory cost. It shows how many rands of gross profit each rand invested in stock generates. Above 1 means you sell stock for more than it cost to acquire; higher is better and reflects both margin and how fast stock turns.
What is the cash-to-cash cycle?
The cash-to-cash (cash conversion) cycle is days inventory outstanding plus days sales outstanding minus days payables outstanding. It measures how many days your cash is tied up between paying suppliers and collecting from customers. A shorter — even negative — cycle frees up working capital.