Inventory Health & DSI Metrics

Inventory Turnover Ratio Calculator: Turnover & Days Sales of Inventory

Measure how rapidly your business sells through stock and replaces inventory over a year or quarter. Calculate your Inventory Turnover Ratio and Days Sales of Inventory (DSI).

Inventory Metrics Formula Inputs
Turnover = COGS / Avg Inventory
₹
Total direct cost of purchasing or manufacturing all goods sold during the year.
Inventory Velocity
Inventory Turnover Ratio
8.00 Times / Year
Average Inventory on Hand: ₹600,000.00
Days Sales of Inventory (DSI): 45.6 Days to Sell Out
Inventory Health Assessment: Healthy Velocity
Your stock turns over once every 46 days. This indicates healthy cash flow and low risk of obsolete inventory.
Formulas & Metrics
1. Inventory Turnover Ratio
Turnover Ratio = Cost of Goods Sold / Average Inventory

Where Average Inventory = (Beginning Inventory + Ending Inventory) / 2.

2. Days Sales of Inventory (DSI)
DSI (Days to Sell) = 365 / Inventory Turnover Ratio

Shows the exact average number of days your stock stays in the warehouse before being converted to cash.

Real-Time Stock Valuation & Movement

MakeGSTBill automatically tracks inventory inward purchases and outward sales invoices without spreadsheet errors.

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