Inventory turnover

Food Inventory Turnover Calculator

Inventory turnover shows how many times your average stock sells through in a period. This food inventory turnover calculator also estimates days on hand (DOH), days of coverage and an indicative reorder point for restaurant and specialty grocery stock.

Period and sales

Used as current stock (stated assumption)

1 to 3,650 days

Values (optional) and safety stock

0 = turnover in value not calculated

COGS over the period

Display label only — no exchange-rate conversion

Calculated results

Average inventory90.0units
Turnover over the periodSales ÷ average inventory1.3333turns
Days on hand (one turn)22.5days
Average daily sales4.00units/day
Days of coverageCurrent stock ÷ average daily sales20.0days
Indicative reorder pointAverage daily sales × lead time + minimum stock48.0units

Stated assumption: the ending inventory is used as the current stock for coverage.

Losses, returns and stockouts are not inferred: build them into your sales and stock data.

Method and limits

How to use this calculator

Enter the beginning and ending inventory for the period, the units sold and the period length in days. Optionally enter the average inventory value and the cost of goods sold to get turnover in value. Fill in the safety stock and the replenishment lead time: coverage and the indicative reorder point calculate instantly, with the stated assumption that the ending inventory serves as the current stock.

Turnover in units relates the quantity sold to average inventory: R_u = Q_sold / S_avg, with S_avg = (S_beginning + S_ending) / 2. The theoretical days of inventory on hand (DOH) is D_rotation = D_period / R_u; coverage, computed separately from the current stock and the average sales pace, is D_coverage = S_current / (Q_sold / D_period).

Average inventory, turnover and days on hand

Average inventory is S_avg = (beginning + ending) / 2: with 100 and 80 units at the start and end of the period, it is 90. Turnover in units follows R_u = sales / average inventory: 120 units sold over 30 days give 1.3333 turns. The theoretical days on hand follows D_rotation = period / R_u — 22.5 days for the stock to renew once. Zero average inventory with positive sales makes turnover undefined — a blocking error, not a silent division — and negative inventories are rejected.

Coverage and the reorder point

Coverage is D_coverage = current stock / (sales / period): 80 units with 120 sales over 30 days cover 80 / 4 = 20 days. By default the ending inventory serves as the current stock — an assumption always displayed, adjustable by re-entering your values. Zero sales leave coverage undefined, never zero days. The indicative reorder point is average daily sales × lead time + safety stock: an item selling 4 units a day with a 7-day lead time and 20 units of safety stock orders as soon as stock drops below 48 units, with an automatic alert.

Worked example

One hundred units at the start of the period, eighty at the end, 120 sold over 30 days, 20 units of safety stock and a 7-day lead time: average inventory 90 units, turnover 1.3333, days on hand 22.5, average sales 4 units per day, coverage 20 days and an indicative reorder point of 48 units. Optionally enter an average inventory value of $900 and a cost of goods sold of $1,800, in the same currency: turnover in value displays 2. Reproduce these values in the tool: you must get exactly the same results.

Assumptions and limits

The ending inventory is used as the current stock for coverage: a displayed assumption — re-enter your values if stock has moved since. Losses, returns and stockouts are not inferred: build them into your sales and stock data. Zero sales leave coverage undefined (no measured demand), and zero average inventory with positive sales blocks the calculation. Turnover in value is only computed when the average inventory value is provided; keeping your counting units consistent — pieces, kilograms, cases — is up to you.

Frequently asked questions

Limits of use

Results are provided for planning and management purposes only; they are not medical advice, health guidance, or accounting counsel. Consult a professional for sensitive situations. See our legal notice.