Calculate your inventory turnover ratio, convert to Days Sales of Inventory, and benchmark yourself against Pakistan industry standards. A low ratio means capital is sitting idle in stock.
Enter your COGS and opening/closing inventory values to calculate turnover ratio, Days Sales of Inventory, and your performance vs your industry benchmark.
Inventory turnover ratio measures how many times you sell and replace your entire inventory in a year. A higher ratio means inventory moves quickly, your capital is working hard. A low ratio means capital is sitting idle in stock, generating holding costs and obsolescence risk.
For Pakistan SMEs, particularly in manufacturing and distribution, low inventory turnover is one of the most common causes of cash flow pressure. Working capital tied up in slow-moving stock cannot be used for growth, debt service, or opportunities.
| Sector | Benchmark Range | DSI (Days) | What It Means |
|---|---|---|---|
| FMCG / Retail | 8–12× per year | 30–45 days | Fast-moving consumer goods; any lower signals overstocking |
| Manufacturing | 4–6× per year | 60–90 days | Longer production cycles justified; below 4× is a problem |
| Pharma / Healthcare | 3–5× per year | 73–121 days | Regulatory minimums and shelf-life drive higher stock |
| Energy / Utilities | 2–4× per year | 91–182 days | Spare parts and MRO have inherently lower turnover |
| Construction | 2–3× per year | 121–182 days | Project-based demand creates lumpy inventory cycles |