The calculation is very simple: simply divide the average stock per product by the sales, multiplying by the period in days (here we are talking about values over 1 year).īe careful, to calculate the Stock Turnover on a consolidated basis (by brand, category, etc.), do not make the average of the stock turnovers by brand (because there would be no weighting on the stock value). You can download the complete Excel below: Download the Excel file Inventory Turnover in days: Excel calculation We will now calculate these indicators in Excel with concrete examples. The frequency of stock turnover is nevertheless exceptional for this type of business. The main reason is that Apple ships its stock by plane, directly from China to its stores, without any intermediate stock, and therefore benefits from very short supply times. This means that, on average, Apple’s inventory is sold out 8 times faster over a year than Samsung. Applying the formula over 365 days, we get 73 days of inventory turnover for Samsung against only 9 days for Apple. Apple has almost 6 times less inventory in value than Samsung, and its turnover is also higher. Let’s take the example of Apple and Samsung. If you are calculating a global indicator, it is better to take a long enough period, I recommend 1 year or 365 days.Īgain, keep the same valuation between Inventory and Sales (purchase price or sales price).
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