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Inventory Turnover & DSI Calculator

Calculate Inventory Turnover Ratio, Days Sales of Inventory (DSI), and inventory carrying costs.

Disclaimer: All calculations and figures are provided for informational purposes only and without warranty. This does not constitute legal, tax, or financial advice. Liability for any decisions made based on this calculator is disclaimed.
Scenarios:

1. Annual COGS & Inventory Balances

$/yr.
$
$

2. Inventory Holding Cost Rate

%
💡 Ø Lagerwert: $75,000.00 gebundenes Kapital (verursacht $15,000.00/Jahr an Lagerkosten).
Inventory Turnover Ratio
6x per year

Inventory fully turns over every 61 days (8.7 weeks).

Inventory Health Status:🟢 Solid (4–8x)
Days Sales of Inv:60.8 days
Holding Costs / yr:-$15,000.00
Avg Inventory$75,000.00working capital
Daily COGS$1,232.88per calendar day
Turnover Weeks8.7 wksrunway on hand
Holding Rate20 % carrying cost

Inventory Capital Velocity: Optimizing Cash Conversion Cycles

Bloated warehouse inventory represents trapped cash flow and silent carrying cost drag. Accelerating inventory velocity directly boosts return on invested capital (ROIC).

1. Core Inventory Formulas

  • Average Inventory: (Beginning Inventory + Ending Inventory) / 2
  • Turnover Ratio: Annual COGS / Average Inventory
  • Days Sales of Inventory (DSI): 365 / Inventory Turnover Ratio
  • Carrying Costs: Average Inventory × Holding Cost Rate %

2. Strategies to Boost Velocity

Improve turnover through demand-driven dynamic replenishment, liquidating slow-moving dead stock, and shortening supplier manufacturing lead times.

Frequently Asked Questions (FAQ)

What is the Inventory Turnover Ratio?▼

The Inventory Turnover Ratio measures how many times a company's average inventory balance is sold and replaced over an annual period: Inventory Turnover = Annual Cost of Goods Sold (COGS) / Average Inventory Value.

What does Days Sales of Inventory (DSI / DIO) indicate?▼

Days Sales of Inventory (also known as Days Inventory Outstanding / DIO) measures the average number of days required to convert stored inventory into finished sales: DSI = 365 / Inventory Turnover Ratio.

What is considered a healthy inventory turnover benchmark?▼

In direct e-commerce and retail, a turnover ratio between 4.0x and 8.0x (45 to 90 days DSI) is standard. Grocery and fast-moving consumer goods (FMCG) target 12x to 25x, while industrial machinery manufacturers typically operate at 2x to 3x.

How are inventory holding (carrying) costs calculated?▼

Inventory carrying costs typically average 18% to 25% of total inventory value annually, consisting of capital cost of money (interest), warehousing rent, insurance, handling labor, spoilage, shrinkage, and obsolescence.

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