Inventory Turnover and DSI
Turnover ratio, days sales of inventory, comparison against a bundled industry aggregate turnover (Census ARTS 2022).
Example
You enter
- COGS (USD) 2000000
- Beginning inventory (USD) 250000
- Ending inventory (USD) 270000
- Period days 365
You get
- Turnover 7.69x
- Days sales of inventory 47.45
- Average inventory 260000
Checked against published worked examples from: OpenStax (Rice University).
Details, formula, and sources
Formula or tableAverage inventory = (BI + EI) / 2. Turnover = COGS / avg_inventory. Days sales of inventory = period_days / turnover.
Source and editionStandard inventory-management identity. Industry aggregate turnovers bundled from the U.S. Census Annual Retail Trade Survey (ARTS 2022, benchmarked).
Free accessFree at census.gov/retail/arts. SBA at sba.gov/data.
What governsEstimate. Verify before sending to your bookkeeper, banker, or CPA.
API field namescogs, beginning_inventory, ending_inventory, period_days, turnover, days_sales_of_inventory, average_inventory
- Average method simple average of beginning and ending inventoryconvention; some firms use 13-month rolling
- Period days 365 defaultcalendar year