Use this free calculator to calculate your inventory turnover rate.
COGS: Use COGS for the period you are looking to calculate turnover for (ex. last 6 months, last 12 months).
For average inventory: This is usually the last figure you received from the inventory company when they counted your inventory in the pharmacy.
Need average days on hand?
Take the number of days in the period and divide it by the inventory turnover ratio from above.
Ex. You turned over stock 10 times in the last 365 days. Your days on hand is 365/10, or 36.5 days.
What does days on hand mean?
Days on hand tells you, on average, how many days the inventory was sitting on your shelf before you sold it.
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