How fast stock moves.
A worked example
Starting figures
- Cost of goods sold
- $480,000
- Average inventory
- $96,000
What it returns
- Turns per year
- 5.00
- Days of inventory
- 73
How to read the results
With the defaults above, turns per year works out at 5.00.
How fast stock moves.
Turns per year
5.00
Days of inventory
73
With these inputs, turns per year comes to 5.00 over 96000 years. Days of inventory works out to 73.
| Input | −10% | Now | +10% |
|---|---|---|---|
| Cost of goods sold | 4.50 | 5.00 | 5.50 |
| Average inventory | 5.56 | 5.00 | 4.55 |
Save this set of inputs, change something, then save again to compare the outcomes side by side.
How fast stock moves.
With the defaults above, turns per year works out at 5.00.