Free Inventory Turnover Calculator Excel Template
Calculate inventory turns by category, by SKU, and by location. Surface the slow movers tying up cash. Most shops can free 20–30% of working capital here.
What you get
Working inventory turnover calculator with multi-level rollup (overall, by category, by SKU), days-of-inventory calculation, and slow-mover identification. The data that frees working capital.
Free 30-day trial · No credit card required · Used by manufacturers since 1991
Why manufacturers still use Excel for this
Inventory turnover is the single best measure of how productive your inventory is. Cost of goods sold ÷ average inventory = turns per year. High turns = inventory is moving. Low turns = cash sitting on the floor doing nothing.
Plant-average turnover hides the action. The overall number might be 6 turns per year — looks decent. Underneath, A items might be turning 12× while a tail of C items is turning 0.5× and quietly tying up 30% of total inventory value. The detail is where the cash hides.
This template calculates turnover at three levels: overall, by category, by SKU. The SKU-level analysis surfaces slow movers — SKUs with under 2 turns per year are candidates for promotion, write-off, or supplier return. Most shops free 20–30% of working capital in the first year of disciplined turnover analysis.
What's inside the template
Overall turnover calculation
Annual COGS ÷ average inventory value = company-wide turns per year. The headline number.
Category-level rollup
Turnover by raw material, WIP, finished goods. Each typically turns at different rates; segmenting reveals the dynamics.
SKU-level analysis
Each SKU's annual usage ÷ average on-hand = SKU turns. Sorted to surface slow and fast movers.
Days of inventory
365 ÷ turns = days of inventory on hand. Easier to interpret than turns for many people (30 days vs 6 turns).
Slow mover identification
SKUs with under 2 turns per year, flagged for disposition decision (promote, discount, return, scrap).
Trend analysis
12-month rolling turnover by category. Improving = working capital release. Declining = working capital trap forming.
How to use this template
A practical walkthrough — five steps from blank spreadsheet to a working schedule.
- 1
Use accurate average inventory
"Year-end inventory" understates the average if year-end is a low season. Calculate average using 12 monthly snapshots (or 4 quarterly) for accuracy.
- 2
Use COGS, not sales
Turnover uses COGS in the numerator, not sales. Sales inflates turnover artificially because it includes margin. COGS gives the true productivity number.
- 3
Segment by category to find the pattern
Plant-average turns lie. RM might turn 8×, WIP 20×, FG 4× — different problems with different fixes. Always segment.
- 4
Convert slow movers monthly, not annually
Slow-mover decisions made quarterly drift; made annually fail. Monthly review with sales and operations keeps obsolete inventory from accumulating.
When you outgrow this template
Excel is the right answer for early-stage scheduling — until it isn't. Here are the warning signs that you need a real production scheduling tool.
If three or more of these apply, you have outgrown Excel scheduling. The good news: you do not have to leave Excel behind. Resource Manager for Excel (RMX) is a real finite-capacity scheduling engine that runs as an Excel add-in — so your team keeps the interface they know while gaining the scheduling power of a dedicated APS tool.
Learn about RMXFrequently asked questions
What inventory turnover is "good"?+
Industry-specific. Distribution: 12+ turns/year. Job shop manufacturing: 6–10 turns. Make-to-stock manufacturing: 4–8 turns. Long-cycle aerospace: 2–4 turns. The right benchmark is your own trend — improving turns by 1.5× over 18 months is achievable and impactful regardless of starting point.
How is inventory turnover different from days of inventory?+
Inverse measures. Turns = how many times you cycle through inventory per year. Days of inventory = how many days of demand you have on hand. 6 turns = 61 days; 12 turns = 30 days. Either works; pick whichever your team understands intuitively.
Why is my plant-average turnover hiding bad SKUs?+
Because averages are weighted by value. A few high-volume fast-moving SKUs (10+ turns) can mask a tail of slow movers (under 1 turn) that account for 30%+ of inventory value. The SKU-level analysis is required to see the slow movers; the average never will.
What should I do with slow-moving inventory?+
Disposition decisions: promote (discount to move), return to supplier (if recently bought), substitute (use in different application), donate, scrap, write-off. The right answer depends on the SKU. The discipline is making the decision quarterly, not letting slow movers age into obsolescence.
Get the free template — plus the tool that grew up around it
The template is the starting point. Resource Manager for Excel (RMX) is what manufacturers move to when their Excel scheduler starts breaking. 35+ years in production, free 30-day trial.