Stock Turnover Rate Calculator
The stock turnover rate is a key financial metric that measures how many times a company has sold and replaced its inventory over a specific period. A higher turnover rate generally indicates that a company is selling products efficiently and that inventory is not sitting on shelves for too long, which can tie up capital and lead to obsolescence or spoilage. Conversely, a very low turnover rate might suggest poor sales, excess inventory, or ineffective inventory management.
function calculateStockTurnover() {
var costOfGoodsSold = parseFloat(document.getElementById("costOfGoodsSold").value);
var averageInventory = parseFloat(document.getElementById("averageInventory").value);
var resultDiv = document.getElementById("result");
if (isNaN(costOfGoodsSold) || isNaN(averageInventory)) {
resultDiv.innerHTML = "Please enter valid numbers for both Cost of Goods Sold and Average Inventory.";
return;
}
if (averageInventory <= 0) {
resultDiv.innerHTML = "Average Inventory must be greater than zero to calculate turnover rate.";
return;
}
var stockTurnoverRate = costOfGoodsSold / averageInventory;
resultDiv.innerHTML =
"
Calculation Result:
" +
"
Stock Turnover Rate: " + stockTurnoverRate.toFixed(2) + " times" +
"This means the company sold and replaced its inventory " + stockTurnoverRate.toFixed(2) + " times during the period.";
}
.stock-turnover-calculator {
font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 500px;
margin: 20px auto;
background-color: #f9f9f9;
}
.stock-turnover-calculator h2 {
text-align: center;
color: #333;
margin-bottom: 20px;
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #555;
}
.input-group input[type="number"] {
width: calc(100% – 22px); /* Adjust for padding and border */
padding: 10px;
border: 1px solid #ccc;
border-radius: 4px;
font-size: 16px;
}
.stock-turnover-calculator button {
width: 100%;
padding: 12px 15px;
background-color: #4CAF50;
color: white;
border: none;
border-radius: 4px;
font-size: 16px;
cursor: pointer;
transition: background-color 0.3s ease;
}
.stock-turnover-calculator button:hover {
background-color: #45a049;
}
#result {
margin-top: 25px;
padding: 15px;
border: 1px solid #eee;
border-radius: 4px;
background-color: #fff;
}
#result h3 {
margin-top: 0;
color: #333;
}
#result p {
margin-bottom: 10px;
color: #666;
line-height: 1.5;
}
#result strong {
color: #4CAF50;
}