Reorder Level Calculator
At what level should you place an order? It finds the critical level from daily sales and lead time.
Days to turn over
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days until stock sells through
Stock Turnover Calculator
Inventory turnover shows how many times the goods you hold are sold and replenished in a period. High turnover means your money is circulating through the till rather than sitting on the shelf; low turnover points to capital tied up in your warehouse. This tool calculates turnover, average days to turn over and the money tied up in your stock together.
Inventory Turnover
Turnover
—
times in the period
Average stock
—
money tied up in the warehouse
Average daily sales
—
at cost
Cost of goods sold is not your sales revenue; it is what the products you sold cost you. To find it from opening stock, purchases and the closing count, use the cost of goods sold calculator. In an income and expense template, the period total of the "Merchandise Purchases" category is a good starting point.
Calculation formula
Ortalama stok = (Dönem başı stok + Dönem sonu stok) ÷ 2 Devir hızı = Satılan malın maliyeti ÷ Ortalama stok Devir süresi (gün) = Dönem gün sayısı ÷ Devir hızı
What is a good turnover rate?
It varies a lot by industry. In fresh food 20-40 turns a year is normal, while in furniture 3-4 turns is considered good. In stationery and hardware, 4-8 is common.
Your own trend matters more than the absolute figure: if turnover is falling compared with last quarter, you are either buying too much or sales are slowing.
What does low turnover signal?
Low turnover means goods sitting in your warehouse for a long time. The cost is not only tied-up cash: shelf life shortens, products go out of fashion, shrinkage rises and warehouse space is taken up.
Interpreting turnover without measuring the shrinkage at the end of this chain is incomplete: the slower stock turns, the more is lost to spoilage and expiry dates, so the same goods both sell late and partly never sell at all. Measure what percentage the loss reaches and how many lira it amounts to with the shrinkage rate calculator; watching the two numbers side by side shows you which product's order quantity to reduce.
Practical method: rank your products by turnover and put the slowest 20% on promotion or stop ordering them. The movement data in the inventory tracking template lets you make this split.
Think of days to turn over together with collection period
If your stock turns over in 60 days, your customer pays after 45 days and you pay your supplier in 30 days, you are financing the 75 days in between with your own capital. This is the most common cause of cash squeezes; track the payment-term side too with the account ledger template.
Frequently asked questions
Where do I find cost of goods sold?
It is found with the formula opening stock + purchases during the period − closing stock. If you keep income and expense records, your "Merchandise Purchases" total gives an approximate value.
Can I use only today's stock instead of average stock?
You can, but the result will be misleading; in seasonal businesses stock varies a lot during the year. The average of opening and closing stock is more accurate.
Is high turnover always good?
No. Very high turnover can also mean you often run out of stock. Set your critical stock level and make sure you are not missing sales.
Can I calculate it per product?
Yes, you can apply the same formula to a single product: that product's cost for the period ÷ average stock value.
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To keep this calculation in Excel
Inventory Tracking Excel
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Warehouse Count / Inventory Excel
Compares the quantity in your system with the physical count and automatically reports shortages, surpluses and the value of the loss.
Search terms: inventory turnoverinventory turnover daysstock turnover ratioinventory analysis
Last updated: October 5, 2026