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Inventory control / follow the cost flow

Cannabis Inventory Turnover Calculator

Measure how quickly inventory is moving instead of looking only at sales. Enter cost of goods sold, average inventory at cost and period length to calculate turnover and approximate days of inventory on hand.

Browse Dispensary toolsRead your inventory cycle
01 / Keep the same period

Enter cost and inventory

Use inventory at cost, with COGS for the same dates. The example values are not industry benchmarks.

Average is the important word.

A period-end balance can miss a large delivery or a mid-period stockout. If you have only opening and closing balances, use the helper below. More frequent snapshots may better represent a changing balance.

Build an opening / closing averagePreview two inventory balances, then apply the average explicitly.

Both balances belong at cost.

Use balances from the start and end of the same period as COGS. This simple mean does not reconstruct the balances between those dates.

Average of the two balances—(Opening + closing) ÷ 2

Enter both inventory balances to preview an average.





What it calculates
Use the result as a scenario, not a black box
Turnover connects purchasing to actual product movement. A higher turnover means the same inventory investment is supporting more cost-of-goods flow. Days on hand expresses the same relationship in a more operational way: roughly how many days of inventory the average balance represents at the current rate of sales.
How the math works
Inventory turnover = period COGS ÷ average inventory. Days on hand = period days ÷ turnover. Inventory-to-COGS ratio = average inventory ÷ period COGS.
Example
If 90-day COGS is $400,000 and average inventory at cost is $100,000, turnover is 4.0 times during the period. That corresponds to about 22.5 days of inventory on hand.
Test the sales volume needed to cover fixed costs with Break-Even and examine service coverage with Budtender Staffing.
For inventory records and store setup, review Dispensary POS systems and Setting up a marijuana dispensary.
The OpenStax inventory-ratio explanation uses COGS and average inventory to relate turnover to the average inventory balance. Use the actual length of your selected period when calculating days.



FAQ
Questions about this calculator
Is higher inventory turnover always better?
Not automatically. Extremely high turnover can mean stockouts and lost sales. The goal is an appropriate balance for the category and lead time.
How do I calculate average inventory?
A simple method is (beginning inventory + ending inventory) ÷ 2. More frequent snapshots are better when balances swing widely.
Can I calculate turnover by category?
Yes, and category-level turnover is often more actionable than a store-wide number.


From inventory cycle to next decision
Connect stock movement to margin.
Use the same cost basis when moving from inventory turnover to profit, pricing and wholesale models.
Retail economicsDispensary MarginBring period COGS into the full operating result.Retail pricingProduct PricingKeep inventory cost separate from selling price and markup.Licensed wholesaleWholesale MarginCheck purchasing and wholesale assumptions on a consistent cost basis.