How to Calculate Inventory Turnover
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Effectively managing the inventory of a business is crucial. Having insufficient inventory on hand can often result in lost sales and dissatisfied customers. But having too much inventory on hand can be financially strenuous as your available cash is tied up in product that sits in your warehouse. Businesses that successfully manage their inventory keep enough on hand to satisfy demand and replenish that inventory just as their supply is running out. Businesses that are seasonal in nature or that have fluctuating demand maintain a 'safety stock' to ensure they can accommodate unanticipated needs.

Use this calculator to calculate inventory turnover.

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The calculations provided by this calculator are for educational purposes only and based entirely on the information you enter, including any savings rate or expected rate of return. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. These calculations do not reflect the terms available for any Regions savings or other deposit accounts. Find out more about the Regions Small Business CashCOR process.