Accounting & bookkeeping help centre
Assets & costing · Calculator
Inventory review
Calculate stock turnover, holding days and a target-margin reasonableness check.
EXAMPLE
Your results and working
Cost of goods sold₹41,00,000.00
Inventory turnover4.56×
Stock holding80.12 days
Closing stock implied by target margin₹3,00,000.00
| Working | Amount |
|---|---|
| Average stock | ₹9,00,000.00 |
| Closing stock entered | ₹10,00,000.00 |
| Difference from target-margin estimate | ₹7,00,000.00 |
What this result includes
Use annual figures: turnover = annual COGS ÷ average stock; holding days = average stock ÷ annual COGS × 365. Average stock here is (opening + closing) ÷ 2.
The margin-based closing-stock figure is a reasonableness check, not a valuation or a journal entry. Value inventory using verified quantities and the applicable cost / net realisable value rules.
Investigate differences with physical stock, valuation records, purchase cut-off and wastage.
A ratio is shown as Not available when its denominator is zero or unsuitable. Compare like periods and the same accounting basis; these tools do not assign a credit rating.