AVERAGE INVENTORY
Average inventory calculator.
Two methods. (Beginning plus ending) over two for steady-state books. Twelve-month average for seasonal ones. Both feed the turnover formula.
Two-point method
Average inventory
$600,000
Twelve-month method
For seasonal businesses, summing twelve month-end balances and dividing by twelve produces a more honest denominator. The fields below carry sample defaults; overwrite the months that apply.
Twelve-month average$609,583
Which to use
Steady books, two-point method. Seasonal books (apparel, lawn care, school supplies), twelve-month method. Auditors accept either; document the choice.