EnglishFrançaisEspañol
Inventory turnover and stock cover PDF Print E-mail
There are no translations available.

Both notions constitute good indicators to evaluate a company's procurement management, purchase management or inventory management.

They can be calculated on the global inventory but also allow in order to establish an inventory mapping: for example, dividing the inventory value into different inventory cover classes, then working firstly on highest cover classes...

See Free-Logistics.com © Spec Sheet on Obsolete inventory control


  • The inventory turnover corresponds to the average frequency of considered inventory renewal during a given time.

For example an annual turnover value of 12 means that the considered inventory is 12 times renewed a year, once a month.

The annual turnover is the annual consumption C (past or projected according to the context) divided by the average inventory Sm.

Rs = C / Sm

Numerator and denominator units of measurement must be identical (units, value, volume...).


  • The Glossary Link stock cover (or days of inventory, inventory cover) indicates the number of days of consumption which the Glossary Link stock can cover.

For example, if the stock is 30 units and if the daily average consumption is 5, then the stock cover is 6 days.

The cover is the average stock Sm divided by the average daily (to obtain a result in number of days) consumption Cj (past or projected according to the context).

Cs = Sm / Cj

Numerator and denominator units of measurement must be identical (units, value, volume...).


See Free-Logistics.com © Spec Sheet on Inventory Management KPI