{
  "slug": "vet-inventory-turnover",
  "title": "Veterinary Inventory Turnover Calculator",
  "heading": "Veterinary/Dental Inventory Turnover Calculator",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/vet-inventory-turnover",
  "summary": "How efficiently drug, supply, and retail inventory converts to revenue.",
  "description": "Inventory sitting on the shelf ties up cash and risks expiring before it's used, while too little on hand causes back-orders that push patients to online retailers. This calculator computes inventory turnover — cost of goods sold divided by average inventory value — and converts it into days-of-supply on hand, which is the more intuitive number for deciding reorder frequency. Well-managed veterinary and dental practices typically turn inventory 6-10 times per year (roughly 36-60 days of supply on hand); turnover below 4 times a year usually means excess stock and cash tied up unnecessarily.",
  "formula": "Turnover = annual COGS ÷ average inventory value; days on hand = 365 ÷ turnover.",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=vet-inventory-turnover",
  "inputs": [
    {
      "id": "annualCogs",
      "label": "Annual cost of goods sold (drugs, supplies, retail)",
      "kind": "number",
      "hint": null,
      "default": 340000,
      "unit": "$",
      "min": 0,
      "max": null
    },
    {
      "id": "avgInventoryValue",
      "label": "Average inventory value on hand",
      "kind": "number",
      "hint": null,
      "default": 48000,
      "unit": "$",
      "min": 1,
      "max": null
    }
  ],
  "outputs": [
    {
      "id": "turnover",
      "label": "Inventory turns per year",
      "format": "decimal",
      "hint": null,
      "primary": true
    },
    {
      "id": "daysOnHand",
      "label": "Days of supply on hand",
      "format": "decimal",
      "hint": null,
      "primary": false
    },
    {
      "id": "inventoryAsPctCogs",
      "label": "Inventory as % of annual COGS",
      "format": "percent",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual cost of goods sold (drugs, supplies, retail): 340000 $",
      "Average inventory value on hand: 48000 $"
    ],
    "outputs": [
      "Inventory turns per year: 7.08",
      "Days of supply on hand: 51.5",
      "Inventory as % of annual COGS: 14.1%"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual cost of goods sold (drugs, supplies, retail) ($).",
      "Enter average inventory value on hand ($).",
      "Read your inventory turns per year on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "annualCogs": 205000,
        "avgInventoryValue": 29000
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "annualCogs": 340000,
        "avgInventoryValue": 48000
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "annualCogs": 545000,
        "avgInventoryValue": 77000
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "What turnover rate should a vet or dental practice target?",
      "a": "6-10 turns per year is a solid general target, translating to roughly 36-60 days of inventory on hand at any time. Practices heavy in slow-moving specialty items or bulk-purchased retail food may run somewhat lower without it being a red flag, provided cash flow supports it."
    },
    {
      "q": "Why does low turnover matter if the inventory eventually sells?",
      "a": "Cash tied up in slow-moving inventory can't be used for payroll, debt service, or growth investment, and every month it sits is a month closer to expiration for drugs and biologics. Low turnover is effectively an interest-free loan the practice is giving to its suppliers."
    },
    {
      "q": "How often should average inventory value be recalculated?",
      "a": "Ideally monthly using point-of-sale or practice management software inventory reports, since seasonal demand (heartworm/flea season, holiday dental promotions) shifts the right stocking level throughout the year. A single annual snapshot can miss significant swings."
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/practice-overhead-ratio",
    "https://www.revenuelab.fyi/toolbox/lab-fee-margin",
    "https://www.revenuelab.fyi/toolbox/dental-office-break-even"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Veterinary Inventory Turnover Calculator (https://www.revenuelab.fyi/toolbox/vet-inventory-turnover)"
}