Inventory

Inventory Turnover Calculator

How much cash am I storing on the shelf instead of using?

Slow turns mean cash sitting still and product ageing. Fast turns mean tight cash use but more risk of running out. This tells you which side you are on.

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Worked answer2.58See it ↓
01

Your numbers

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Cost of goods soldP&L
$53,500.00

Cost of what you sold during the period.

Opening inventory valueCount sheet
$21,400.00

Cost value on the shelf at the start of the period.

Closing inventory valueCount sheet
$20,100.00

Cost value on the shelf at the end of the period.

Days in the periodYour reporting calendar
30 days

Length of the period the figures above cover.

02

The answer

Inventory turns

2.58

over 30 days

  • Days of inventory on hand11.6 days
  • Average inventory value$20,750
  • Annualised turns31.37
  • Cost of goods sold$53,500
  • Change in inventory valueA rising value with flat sales means cash moving onto the shelf.-$1,300
Beer and fresh food should turn far faster than spirits and wine. Run this by category rather than across the whole bar, or a deep wine list will make everything look slow.
03 Show the arithmetic
Average inventory = (opening inventory + closing inventory) ÷ 2
Inventory turns = cost of goods sold ÷ average inventory
Days of inventory on hand = days in period ÷ inventory turns
04 What the answer leaves out
  • A single blended figure across beer, wine, spirits, and food is hard to act on. Category-level turns tell you where the cash actually is.
  • Two count dates make a rough average. If your inventory swings hard mid-period, this understates the variation.
Continue if it helps

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