Inventory Turnover Ratio Excel Template

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Luxurious Company sells industrial furniture for the office buildings Infrastructure
During the current year, Luxurious Company reported the cost of goods sold on
its income statement of $1,000,000. Luxurious’s beginning inventory was $3,000,000
and its ending inventory was $4,000,000.

Opening Inventory 3000000

Closing Inventory 4000000.00
cost of goods sold 1,000,000

Average Inventories can be Calculated as:

Average Inventories = Beginning Inventories + Ending Inventories) / 2

Average Inventories 3500000

Inventory Turnover Ratio can be calculated as:

Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory

Inventory Turnover Ratio 0.29

Days in Inventory can be calculated as:

Days in Inventory = 365 / Inventory Turnover Ratio

Days in Inventory 1278

Calculation of inventory turnover and days inventories outstanding for XYZ, Inc.
based on the information provided as below:

Opening Inventory 15000

Closing Inventory 30000
Cost of Goods Manufactured 250000

Cost of goods sold can be calculated as below

Cost of goods sold =
Beginning Inventories + Cost of Goods Manufactured in a company – Ending Inventories

Cost of Goods Sold 235000

Average Inventories can be Calculated as:

Average Inventories = Beginning Inventories + Ending Inventories) / 2

Average Inventory 22500

Inventory Turnover Ratio can be calculated as:

Inventory Turnover Ratio = Cost of Goods Sold/ Average Inventory
Inventory turnover ratio 10.44

Days in Inventory can be calculated as:

Days in Inventory = 365 / Inventory Turnover Ratio

Days inventory outstanding 34.95