nalyze inventory efficiency and optimize stock levels for your business
3.6
Inventory Turnover Ratio
Performance Rating: GoodGood
Interpreting Inventory Turnover:
• Low (< 2): Possible overstocking, obsolescence risks
• Medium (2-4): Moderate efficiency, could be improved
• Good (4-6): Healthy balance of inventory management
• Excellent (> 6): Very efficient inventory management
Industry Benchmark Comparison
Metric
Your Business
Industry Average
Difference
Inventory Turnover
3.6
5.2
-1.6
Days Inventory Outstanding
102
70
+32 days
Carrying Cost (Annual)
$17,500
$12,019
+$5,481
Results
Inventory Turnover Ratio
3.6
Number of times inventory is sold and replaced in a period
Days Inventory Outstanding (DIO)
102
Average number of days to sell through inventory
Average Inventory Value
$70,000
Average value of inventory during the period
Potential Cash Flow Improvement
$11,667
Potential working capital that could be freed by optimizing inventory