AccountingHub
A2

Turnover and days on the shelf

See how fast Trekking’s FIFO inventory moved during August.

Average inventory

$1,165

($910 + $1,420) ÷ 2

Inventory turnover

3.9 times

$4,570 ÷ average inventory

Days' sales in inventory

113.4 days

ending inventory ÷ cost of goods sold × 365

divides cost of goods sold by average inventory: how many times inventory was sold and replaced during the period. A higher number means faster movement.

flips the same idea around: roughly how many days it would take, at the current rate, to sell off everything on the shelf right now.