Inventory & COGS
For unit count estimate
Inventory Analysis
Turnover Ratio
4.0×
Days Sales of Inventory
91 days
Avg Inventory Value
$45,000.00
Annual Holding Cost
$11,250.00
Your inventory turns 4.0 times per year. On average, stock sits for 91 days before selling. Estimated units on hand: 1,800.
Frequently Asked Questions
What is a good inventory turnover ratio?
It depends on industry. Grocery stores turn inventory 12–15× per year. Retail clothing 4–6×. Auto dealers 8–12×. A higher ratio generally means efficient inventory management, but too high can mean stockouts. Below 4× often signals slow-moving stock.
What is Days Sales of Inventory (DSI)?
DSI = 365 / Inventory Turnover. It measures how many days, on average, inventory sits before being sold. Lower is generally better. A DSI of 30 means inventory sells in 30 days on average.
What is inventory holding cost?
Holding costs (also called carrying costs) include storage, insurance, depreciation, opportunity cost, and obsolescence. They typically run 20–30% of inventory value per year. High holding costs make excess inventory very expensive.
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