Inventory Turnover Calculator: Find the Warehouse Loan on Your Shelves

Your aggregate turnover ratio hides the slow movers. Segment by category to find which SKU group is acting as an interest-free loan to your shelves, and what it’s costing you per year in capital and carrying cost.

Inventory Turnover Calculator

Find slow-moving stock, calculate carrying costs, and see the Warehouse Loan hiding on your shelves.

Inventory Category 1
Percentage of inventory that hasn't moved in 180+ days
Typically 15-30% including storage, insurance, obsolescence, capital cost. Use 5% for capital cost only.
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How to Read Your Results

Warehouse Loan figure

The EUR value of inventory that hasn’t moved within your defined slow-moving threshold. You paid cash to buy it, it’s sitting on a shelf, and you’re paying to keep it there while it earns nothing. It will become cash again, but on a timeline you don’t control.

Carrying cost shown

The annual cost of holding that inventory: warehouse space, insurance, spoilage risk, and capital tied up. The calculator uses a 20-25% rate as a standard approximation. Your actual rate may be higher if you have expensive warehouse space or perishable stock.

Capital cost shown

The financing cost of cash tied up in slow stock. If your cost of capital is 7% and you have EUR 600K in slow-moving inventory, that’s EUR 42K per year that doesn’t appear anywhere on the P&L.

Key Insight: The most common finding is that one or two categories account for the majority of the Warehouse Loan while the rest of the portfolio turns well. That concentration makes it actionable. You don’t need to fix everything at once.

Where to Get Your Numbers

Metric Where to find it SAP Transaction
Average inventory Opening + closing inventory balance / 2. If highly seasonal, use a 12-month average of monthly balances. MB52
COGS Cost of goods sold from P&L for the same period. Do not use revenue or gross profit. F.01 (P&L report)
Slow-moving % Inventory aging report filtered by no movement in N days. Use best estimate if aging report unavailable and note it as an assumption. MB52 with validity date filter

Related Tools

Working Capital Calculator

See how inventory days feed into your total cash cycle cost.

Gross Margin Calculator

Check whether categories with slow inventory are also your lowest margin lines.

Go Deeper