Inventory Turnover & Reorder Point Calculator
Stock is cash in a different shape. This calculator measures how fast yours turns into money again, prices what holding it costs while it waits, and works out the point at which each item has to be reordered so it does not run out before the next delivery lands.
The first sheet starts with two numbers from the P&L and the stock report: cost of goods sold for the period, and inventory at the beginning and end of it. Turnover is COGS over average inventory; days inventory outstanding is the same relationship read as time. The sample turns stock 4.9 times a year, which means a unit sits on the shelf for 74 days before it sells. Both figures are shown because one of them is easier to act on: nobody can picture 4.9 turns, but everybody understands that goods bought in March are still there in June.
Holding that stock is not free even when nothing goes wrong, so the sheet asks you to build a carrying cost rate out of four parts: the cost of the capital, storage and handling, insurance, and what you write off to damage and obsolescence. At 22% on an average 280,000 of stock, holding it costs 61,600 a year. One day of shelf time across the whole stock costs about 832. That is the number that makes a conversation about ordering patterns concrete.
Next to it the template shows what a faster turn would release. Cutting days of stock from 74 to 60 frees 53,151 of cash once and saves 11,693 of carrying cost every year after that — a distinction worth keeping straight, because only the second one improves profit. A separate block handles the stock behind the headline number: goods with no sale in 180 days. In the sample they are 16% of the shelf, and excluding them lifts real turnover from 4.9 to 5.9.
The second sheet is the operational half. One row per SKU with daily demand, supplier lead time and the safety stock you want in days; the sheet returns the reorder point, the economic order quantity, and a plain instruction in the last column — order now, or how many days of cover you still have above the point. It also totals what this week's replenishment will cost, which is the figure that has to be checked against cash rather than against the shelf. Finmap tracks that side: what you owe suppliers and what is actually available to spend before the order is placed.
