Inventory Turnover Calculation
Calculate the inventory turnover rate from the annual consumption cost and average stock cost. Formula and scientific basis.
Inventory turnover rate
6,0kez/yıl
A high turnover rate indicates efficient use of stock; very low values may indicate idle/excess stock, while very high values may indicate stock-out risk.
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Scientific and theoretical basis
Inventory turnover is an indicator of supply efficiency that shows how many times stock is consumed and replenished on average in a year.
Formula and Logic
Inventory Turnover = Annual Consumption Cost / Average Stock Cost
How is it interpreted?
A high turnover rate indicates that capital is tied up less in stock and that materials are being used efficiently. Very low values may indicate idle/excess stock and expiration risk; very high values may indicate frequent stock-out risk.
Considerations
Separate calculations for material groups (medications, supplies, critical device parts) are more meaningful. A balanced supply policy should be established along with the critical stock level.
Sık Sorulan Sorular
How is inventory turnover calculated?
Annual consumption cost is divided by the average stock cost.