Inventory turns, days on hand and GMROI
Turns, days on hand, gross margin return on inventory and the cash tied up versus a target.
Get this tool with its role plan
This is a premium tool. It comes with its role's plan: sign in, then add the role in Billing.
Comes with the data scientist plan: every tool for the role, from $10.20 a month at the launch price.
- Your own numbers, worked out as often as you like
- The full inventory review sheet you can print or save to My work
- 3 cited sources, linked, with the checks to make
- Every other tool for the same role, in the same plan
- A plain-words read of your result (a fuller AI read with the Bifrost AI add-on)
Included in these role plans
Example result · fictional numbers
What you get: inventory review sheet
Worked out by this tool from its default inputs. Its role plan lets you run your own numbers, print the sheet and save it.
6.00 turns against 8.0: $350,000.00 too much stock, $77,000.00 a year to carry it
- Inventory turns
- 6.00
- Days on hand
- 61
- GMROI
- 1.86 (gross margin $ per $ of inventory)
- Inventory at 8.0 turns
- $1,050,000
- Cash that could be freed
- $350,000
Inventory scorecard
- Sales
- $11,000,000.00 (gross margin 23.6%)
- Turns and days on hand
- 6.00 turns, 61 days
- GMROI
- $1.86 of gross margin a year per $1 of stock
- Inventories-to-sales ratio
- 1.53 months of sales on hand; compare with your trade in the Census series
Also on the sheet
- Inventory health · 4 lines, starting with “Dead stock (no sales in 12 months)”
- Plan to reach 8.0 turns · 4 lines, starting with “Stock to take out”
- Cash cycle and what-if · 5 lines, starting with “Days of stock you pay for yourself”
The plain-words read of this example
Inventory of $1,400,000.00 turns 6.00 times a year, 61 days on hand, about 1.53 months of sales; compare that with the Census ratio for your trade. $112,000.00 of it is dead stock; the active stock alone turns 7.50 times. Reaching 8.0 turns means taking out $350,000.00, which saves about $77,000.00 a year in carrying cost. After 45 days of supplier credit you fund 16 days of stock yourself. Check the aging split against the ERP before you set the plan.
3 cited sources
- Monthly Wholesale Trade: Sales and Inventories (US Census Bureau)
- Annual Wholesale Trade Survey (US Census Bureau)
- H.15 Selected Interest Rates (Board of Governors of the Federal Reserve System)
Plus 6 step-by-step checks, a print layout and a link that reopens it with your numbers.