The turnover equation
Turnover = COGS ÷ Average inventory
DIO = Period ÷ TurnoverAlways use cost-basis inventory — using retail/price basis will inflate the ratio because it includes margin.
Inventory turnover · 2026
How fast does your inventory turn?
Free inventory turnover calculator: enter COGS and average inventory to get the turnover ratio, days on hand (DIO) and how you compare to your industry benchmark. Spot slow-movers and free up working capital.
Live calculatorRecomputes as you type
days
Results update live as you type.
Turnover ratio
6.25× / period
Healthy
Days on hand (DIO)58.4 days
Average inventory40,000.00 MAD
Daily COGS684.93 MAD
🏬 In line with General retail (6–10x)
Formula
Turnover = COGS / Avg inventory
DIO = Period / TurnoverValues in MAD. Use cost-basis inventory (not retail).
MoulMall App
Stop calculating. Start invoicing.
MoulMall automatically applies the right VAT, tracks stock and generates invoices for you — so you never have to open a calculator again.
💰
Find trapped cash
Slow inventory is cash sitting on shelves. Turnover tells you how fast your capital recycles.
📉
Spot dead stock
A tiny set of SKUs often drags the whole ratio down. Identify, discount, clear.
⚖️
Balance efficiency & service
Too fast → stockouts. Too slow → waste. The right number depends on your category.
How it works
4 steps to a clear picture
1
Pull your COGS
Total cost of goods sold for the period — from your P&L or accounting software.
2
Compute average inventory
Use a period average at cost, or (Beginning + Ending) ÷ 2 for a quick estimate.
3
Calculate & annualize
We compute the ratio for your period and an annualized equivalent for comparisons.
4
Compare to benchmarks
Match against your retail category — grocery, fashion, electronics, furniture, luxury…
Benchmarks
Annual turnover by retail category
Indicative ranges — actual benchmarks vary by region, channel and business model.
| Category | Turnover range | Typical DIO |
|---|---|---|
| 🛒Grocery & FMCG | 12–20× / year | 18–30 days |
| 💊Pharmacy & health | 8–12× / year | 30–46 days |
| 🏬General retail | 6–10× / year | 37–61 days |
| 📱Electronics | 4–8× / year | 46–91 days |
| 👗Fashion & apparel | 3–6× / year | 61–122 days |
| 🛋️Furniture & home | 2–4× / year | 91–183 days |
| 💎Luxury goods | 1–3× / year | 122–365 days |
Live turnover per SKU
This calculator gives you one ratio for the whole catalog. In practice, 80% of the dead weight comes from 20% of the SKUs. MoulMall tracks turnover per SKU continuously and flags slow-movers before they become dead stock.
Track per-SKU turnover in MoulMallLocalized
Choose your country
Calculations use your local currency — pick the country that matches your books.
🇲🇦MarocTVA20%MAD🇫🇷FranceTVA20%EUR🇪🇸EspagneIVA21%EUR🇹🇳TunisieTVA19%TND🇩🇿AlgérieTVA19%DZD🇩🇪AllemagneMwSt19%EUR🇮🇹ItalieIVA22%EUR🇧🇪BelgiqueTVA21%EUR🇳🇱Pays-BasBTW21%EUR🇵🇹PortugalIVA23%EUR🇸🇪SuèdeMoms25%SEK🇨🇭SuisseTVA8.1%CHF🇬🇧Royaume-UniVAT20%GBP🇪🇬ÉgypteVAT14%EGP🇸🇳SénégalTVA18%XOF🇨🇮Côte d'IvoireTVA18%XOF🇨🇲CamerounTVA19.25%XAF🇸🇦Arabie SaouditeVAT15%SAR
FAQ
Inventory turnover — questions answered
What is inventory turnover?⌄
Inventory turnover measures how many times you sell and replace your inventory during a period. A turnover of 6 over a year means you cycled through your entire stock 6 times — roughly every 2 months.
What is the inventory turnover formula?⌄
Inventory turnover = Cost of goods sold (COGS) ÷ Average inventory (at cost). Average inventory is usually (Beginning inventory + Ending inventory) ÷ 2, or a simple period average from your accounting system.
What is days on hand (DIO)?⌄
Days Inventory Outstanding (DIO), or "days on hand", is the average number of days a unit of inventory sits in your warehouse before being sold. Formula: DIO = Period days ÷ Turnover ratio, or equivalently Average inventory ÷ Daily COGS.
Is high inventory turnover always good?⌄
Not necessarily. Very high turnover (above ~15x/year in general retail) can signal understocking and a higher stockout risk, which hurts sales. Very low turnover (below ~3x) usually means dead stock and tied-up cash. The sweet spot depends on your category — grocery should be 12–20, fashion only 3–6.
Should I use COGS or revenue?⌄
Use COGS. Using revenue will inflate the ratio because revenue includes margin. For consistency, both the numerator (COGS) and denominator (average inventory) should be at cost.
Inventory turnover calculator — by country
Inventory turnover MoroccoInventory turnover FranceInventory turnover SpainInventory turnover TunisiaInventory turnover AlgeriaInventory turnover GermanyInventory turnover ItalyInventory turnover BelgiumInventory turnover NetherlandsInventory turnover PortugalInventory turnover SwedenInventory turnover SwitzerlandInventory turnover United KingdomInventory turnover EgyptInventory turnover SenegalInventory turnover Ivory CoastInventory turnover CameroonInventory turnover Saudi Arabia