How to Calculate Inventory Turnover Days

Written by carter mcbride
  • Share
  • Tweet
  • Share
  • Pin
  • Email
How to Calculate Inventory Turnover Days
Inventory ratio in days is a measure of economic performance. (Calculator image by Alhazm Salemi from

Inventory turnover in days takes a firm's inventory turnover ratio and divides it by 365. The ratio shows how many days it takes a company to sell off the inventory it has on hand. The lower the inventory ratio in days, for example three days, the faster a company sells off its inventory during the year. The higher the inventory ratio in days, for example 80 days, the slower a company sells of its inventory. This ratio is subjective, so you need to compare results with industry and similar firm results.

Skill level:

Other People Are Reading

Things you need

  • Financial statements

Show MoreHide


  1. 1

    Find cost of goods sold on a company's income statement. Find inventory on the same company's balance sheet.

  2. 2

    Divide cost of goods sold by inventory to calculate inventory turnover.

  3. 3

    Divide 365 by inventory turnover to calculate inventory turnover in days.

Don't Miss

  • All types
  • Articles
  • Slideshows
  • Videos
  • Most relevant
  • Most popular
  • Most recent

No articles available

No slideshows available

No videos available

By using the site, you consent to the use of cookies. For more information, please see our Cookie policy.