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Inventory Turnover History Chart
Chart any stock's 10-year inventory turnover trend in one view, with a sector median reference line and a High Efficiency / Efficient / Adequate / Slow Moving verdict. Auto-populates from Yahoo Finance. Pair it with the inventory turnover calculator and the asset turnover ratio calculator.
How to Read the Inventory Turnover Trend
Inventory turnover measures how many times per year a company sells through its entire inventory — cost of goods sold divided by ending inventory. It is one of the most direct signals of operational efficiency available from public financials. A rising turnover means the company is moving goods faster relative to the stock it holds; a falling turnover means it is accumulating inventory relative to sales, which ties up working capital and increases the risk of markdowns or obsolescence.
The ratio is highly sector-dependent. A grocery chain turning inventory 12× per year is normal; the same figure at a luxury automaker would indicate they cannot build cars fast enough. That is why this chart overlays a sector median reference line — the relevant comparison is always against industry peers, not an absolute threshold. The color coding (green ≥8×, blue 4–8×, amber 2–4×, red <2×) provides a quick read without requiring sector knowledge, but the trend direction over time matters just as much as the current level.
Pair this chart with the days inventory outstanding calculator to express the same metric in days rather than turns (DIO = 365 ÷ inventory turnover), and with the inventory turnover calculator for a single-year deep dive with full sector benchmarks.
Related Tools
Complete the efficiency picture with these related tools:
- Inventory Turnover Calculator — single-year deep dive with 10-sector benchmarks
- Asset Turnover Ratio Calculator — efficiency of the entire asset base, not just inventory
- Days Inventory Outstanding Calculator — inventory turnover expressed in days
- Cash Conversion Cycle Calculator — how inventory, receivables, and payables combine into working capital efficiency
Frequently Asked Questions
What does the inventory turnover history chart show?
It plots up to 10 fiscal years of a company's annual inventory turnover ratio (cost of goods sold divided by ending inventory) as colored bars. Higher ratios mean the company sells through its inventory faster, which generally signals strong demand, lean operations, or effective supply chain management. Lower ratios suggest slower sales or excess stockpiling.
What do the bar colors mean?
Bars are colored by the absolute level of the inventory turnover ratio. Green bars (≥8×) indicate high-efficiency operations typical of fast-moving retailers. Blue bars (4–8×) indicate efficient inventory management. Amber bars (2–4×) indicate adequate but not exceptional velocity. Red bars (<2×) flag slow-moving inventory that may tie up working capital.
What is a good inventory turnover ratio?
It depends heavily on the industry. Grocers and fast-fashion retailers often exceed 8–12× per year because they sell perishables or trend-driven goods quickly. Manufacturers and industrial companies typically run 4–6×. Luxury goods companies may run 1–3× intentionally, since exclusivity requires controlled supply. The sector median reference line on this chart provides the relevant comparison.
How is inventory turnover calculated?
Inventory Turnover = Cost of Goods Sold ÷ Ending Inventory, using annual figures from the income statement and balance sheet. This chart uses end-of-year inventory (not average inventory) to match how Yahoo Finance reports the data. If either COGS or inventory is missing or zero for a given year, that year is excluded from the chart entirely.
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