Inventory Turns Dashboard
Data & Calculations
There are different ways to calculate inventory turns. The selection is really dependent upon the purpose and data availability. For supply chain management perspective, what matters is to monitor the monthly trend over 12-month period. One commonly used calculation:
Inventory Turns =
Cost of Goods (COGS) of last 12 months Sales
Average month-end stock value over last 12 months
The turns can be broken down by inventory segments to fine tune inventory strategies. Higher inventory turns, more efficient inventory is.