Enter your COGS and average inventory value — or units sold and average units in stock — and this tool returns your inventory turnover ratio and how many days of stock you're carrying. The formula is exact; every amount is yours to enter, so nothing here is invented or measured against a benchmark we made up.
⚠️ The arithmetic is exact; the numbers are yours. Turnover and days-on-hand are pure division — no error margin. But the result is only as real as your inputs: enter your own COGS and average inventory (or units), pulled from your accounts, so we don't pre-fill invented financials. The placeholders are a worked example only. There is no universal "right" turnover — the read below is general guidance, not a benchmark, and it varies by category, margin and season. Averaging beginning and ending inventory gives a truer figure than a single snapshot.
Turnover is how many times you sell and replace your average stock in a period. Four turns a year means the whole shelf cycles roughly every three months — a direct read on how hard your inventory is working.
Use COGS ÷ average inventory value when you think in money, or units sold ÷ average units in stock when you think in pieces. Both answer the same question; pick whichever data you have clean.
High turnover frees up cash and cuts dead-stock risk, but too high can mean chronic stock-outs and lost sales. Low turnover ties up capital and invites markdowns. The right level is category- and margin-specific.
Each reorder at Kiwi Giyim is at least 250 pieces per colour. That lifts average inventory on slow colours and drags turnover down, so carry fewer slow colours and time each batch to your lead time.
No black box. The calculator runs exactly these lines:
Turnover = COGS ÷ average inventory value (cost basis) Turnover = units sold ÷ average units in stock (unit basis) Days of inventory = period days ÷ turnover (365 = one year) Worked example: $120,000 of COGS against $30,000 of average inventory gives 120,000 ÷ 30,000 = 4× turnover, and 365 ÷ 4 = about 91 days of stock on hand. The units mode works identically: 12,000 units sold on 3,000 average in stock is also 4× and ~91 days. It's exact arithmetic — the only figures that need to be real are yours.
Planning the reorders behind these turns? Set the trigger with the reorder point calculator, size each batch against the minimum with the MOQ & order value calculator, and price it with the knitwear cost calculator. See every tool on the free tools hub. New to sourcing? Start with our knitwear manufacturer overview.
Inventory turnover is how many times you sell through and replace your average stock over a period. On a cost basis, turnover = cost of goods sold (COGS) ÷ average inventory value at cost. On a unit basis, turnover = units sold ÷ average units in stock. For example, $120,000 of COGS against $30,000 of average inventory is 120,000 ÷ 30,000 = 4× turnover, meaning you cycle through your stock four times in the period. Higher turnover means less capital sitting on the shelf; lower turnover means slower-moving or dead stock.
There is no single 'good' number and we will not invent one for you — it depends heavily on your category, margins, price point and season. A turnover of roughly 4× a year is often cited as a broad apparel rule of thumb, fast-fashion basics turn far faster, and seasonal knitwear typically turns slower because autumn/winter styles sell in a window and then wait for the next season. What matters is the trend against your own history and against your carrying costs: rising turnover on stable margins is efficient, while falling turnover ties up cash and raises markdown risk.
Days of inventory on hand (also called days inventory outstanding, DIO) = period days ÷ turnover, using 365 for a full year. If your turnover is 4× over a year, days of inventory = 365 ÷ 4 = about 91 days, so on average you hold roughly three months of stock. If you measure over a quarter instead, use 90 or 91 days as the period. This calculator does it both ways: it shows the turnover for the period you enter and the matching days on hand, plus an annualized turns figure when your period is not a full year.
Kiwi Giyim's minimum is 250 pieces per colour, per size, so each reorder of a colourway lands as at least 250 units. For a slow-selling colour that raises your average inventory without raising sales, which mathematically lowers turnover and lengthens days on hand. The fix is not to abandon the MOQ but to plan around it: reorder your fast colours more often, be conservative on how many slow colours you carry, and time each 250-piece batch to your lead time. Our reorder point calculator helps you set the trigger so a full MOQ run lands just as you draw down, rather than sitting idle.
Know your turns and days on hand but need the next batch made? Send your style, colours and quantities and we'll reply within one business day with real per-piece pricing, a firm lead time and an honest read on your MOQ — so your fast colours restock before they run dry and your capital isn't stuck on slow ones.