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Calculate inventory turnover ratio, days sales of inventory (DSI), and compare against industry benchmarks. Includes SKU-level analysis and seasonal adjustments.
Inventory turnover ratio measures how many times a company sells and replaces its inventory during a period. Higher turnover indicates efficient inventory management and better cash flow. Lower turnover may indicate overstocking or slow-moving products.
Method 1: COGS (Recommended)
Inventory Turnover = Cost of Goods Sold / Average InventoryMethod 2: Sales
Inventory Turnover = Net Sales / Average InventoryDays Sales of Inventory (DSI)
DSI = 365 / Inventory Turnover Ratio