How to Calculate Inventory Turnover Rate

Inventory Turnover Rate Calculator

Inventory turnover rate is a key financial metric that measures how many times a company has sold and replaced its inventory over a period. A higher inventory turnover rate generally indicates efficient inventory management and strong sales, while a low rate might suggest overstocking, poor sales, or obsolete inventory.

function calculateInventoryTurnover() { var cogs = parseFloat(document.getElementById("costOfGoodsSold").value); var avgInventory = parseFloat(document.getElementById("averageInventoryValue").value); var resultDiv = document.getElementById("result"); resultDiv.innerHTML = ""; // Clear previous results if (isNaN(cogs) || isNaN(avgInventory)) { resultDiv.innerHTML = "Please enter valid numbers for all fields."; return; } if (avgInventory <= 0) { resultDiv.innerHTML = "Average Inventory Value must be greater than zero."; return; } var inventoryTurnoverRate = cogs / avgInventory; resultDiv.innerHTML = "

Your Inventory Turnover Rate:

" + "" + inventoryTurnoverRate.toFixed(2) + " times" + "This means your company sold and replaced its inventory " + inventoryTurnoverRate.toFixed(2) + " times during the period."; } .calculator-container { font-family: sans-serif; max-width: 500px; margin: 20px auto; padding: 20px; border: 1px solid #ccc; border-radius: 8px; box-shadow: 0 2px 5px rgba(0,0,0,0.1); } .calculator-container h2 { text-align: center; margin-bottom: 20px; color: #333; } .input-section { margin-bottom: 15px; } .input-section label { display: block; margin-bottom: 5px; font-weight: bold; color: #555; } .input-section input { width: calc(100% – 22px); /* Adjust for padding and border */ padding: 10px; border: 1px solid #ccc; border-radius: 4px; font-size: 1em; } button { width: 100%; padding: 12px 20px; background-color: #007bff; color: white; border: none; border-radius: 4px; font-size: 1.1em; cursor: pointer; transition: background-color 0.3s ease; } button:hover { background-color: #0056b3; } .result-section { margin-top: 25px; padding: 15px; background-color: #e9ecef; border: 1px solid #dee2e6; border-radius: 4px; text-align: center; } .result-section h3 { margin-top: 0; color: #333; } .result-section p { font-size: 1.1em; color: #333; } .result-section strong { color: #28a745; }

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