# Inventory turnover

> Inventory turnover is a liquidity and working-capital metric, calculated as COGS ÷ Average inventory. Times per period; Days ÷ turnover is DIO.

Source: https://lopifi.com/glossary/inventory-turnover
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is inventory turnover?** Inventory turnover is a liquidity and working-capital metric, calculated as COGS ÷ Average inventory.

## Formula

`COGS ÷ Average inventory`

## Note

Times per period; Days ÷ turnover is DIO

- **Category:** Liquidity & working capital
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** period, cost-of-revenue