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What is turnover days and how is it calculated?

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Turnover days is how many times an average stock is being converted into sales. Fewer turnover days means that you are selling your food quickly and often indicates less waste and lower food cost.


Step 1.

Opening inventory + closing inventory / 2 = average inventory
Opening inventory + purchase – closing inventory = inventory used

Step 2.

Average inventory/inventory used = turnover ratio

Step 3.

Days in the month/Turnover ratio = turnover days