How to Calculate Rate of Stock Turnover

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; }

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