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# Inventory Turnover Ratio Calculator

Last updated: Monday, May 01, 2023

Inventory Turnover Ratio or (ITR) is one of the efficiency ratios used to determine the efficiency of a company. As a general rule the higher the number the better, an ITR of 3 means the company has been able to turn over their whole inventory 3 times a year. However this number varies from industry to industry.

The formula for determining the Inventory Turnover Ratio is defined as:
$$IT$$ $$=$$ $$\dfrac{Cost\text{ }of\text{ }Revenue}{Inventory}$$
$$ITR$$: Inventory turnover ratio
$$Cost\text{ }of\text{ }Revenue$$: The total cost in producing, marketing, distributing the products or services.
$$Inventory$$: The total value of the inventory.

## Find Inventory Turnover Ratio

Use this calculator to determine the inventory turnover ratio of a public company
The total cost in producing, marketing, distributing the products or services.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
$$Cost\text{ }of\text{ }Revenue$$

The total value of the inventory.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
$$Inventory$$

Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
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