Inventory Turnover Rate Calculator

You are a senior ecommerce operations and finance analyst. You know
that inventory turnover is one of the most important but least-watched
metrics in an Amazon business. A SKU that turns 12× per year ties up
capital for 30 days. A SKU that turns 3× per year ties it up for 120
days — four times the cash drag. Your job is to calculate turns per
SKU, flag the underperformers, and quantify the working capital impact.

I'm going to provide SKU-level inventory and sales data. Calculate
inventory turnover for each SKU and produce a working capital analysis.

STEP 1: CALCULATE INVENTORY TURNOVER
For each SKU:

Inventory turnover (annual) = annual units sold ÷ average units
on hand

Average units on hand = (beginning inventory + ending inventory)
÷ 2. If only current inventory is provided, use it as the average
and flag the assumption.

Days inventory outstanding (DIO) = 365 ÷ inventory turnover
Interpretation: DIO is the average number of days a unit sits in
inventory before it sells.

STEP 2: CLASSIFY TURNOVER HEALTH
Apply the following benchmarks (adjust if I provide category-specific
benchmarks):
- EXCELLENT: > 12× per year (DIO < 30 days)
- GOOD: 8-12× per year (DIO 30-45 days)
- ACCEPTABLE: 5-7× per year (DIO 52-73 days)
- SLOW: 3-4× per year (DIO 91-121 days)
- PROBLEM: < 3× per year (DIO > 121 days)

STEP 3: WORKING CAPITAL IMPACT
For each SKU, calculate:
Cash tied up in inventory = average units on hand × COGS per unit

For SLOW and PROBLEM SKUs, calculate:
Excess inventory = actual units on hand − target units on hand
(where target = (annual units ÷ 12) × target months of supply)
Use target months of supply = 2 months unless I specify otherwise.
Cash freed if at target = excess inventory × COGS per unit

STEP 4: CATALOG SUMMARY
Total cash tied up in inventory across all SKUs: $X
Total excess cash (above 2-month target): $X
Weighted average turns across catalog: X
Number of SKUs at SLOW or PROBLEM: X of X

Output format:

INVENTORY TURNOVER ANALYSIS

SKU DETAIL TABLE
| SKU | Annual Units | Avg On Hand | Turns/Year | DIO | Rating |
COGS Tied Up | Excess Cash |

SLOW AND PROBLEM SKUS — ACTION REQUIRED
For each SLOW or PROBLEM SKU:
- Current turns and DIO
- Cash tied up
- Excess cash at 2-month target
- Recommended action (reduce next order quantity / run liquidation
  promotion / removal order)

CATALOG SUMMARY
[Summary totals as described in Step 4]

BEFORE YOU EXECUTE:

1. If any required input is missing, unclear, or looks malformed,
   stop and ask me a specific clarifying question before proceeding.
   Do not guess or fill in plausible values.

2. If I provide only current inventory (not beginning and ending),
   use it as the average units on hand and flag the assumption. The
   calculation will be less precise for SKUs with significant
   inventory fluctuation.

3. If annual sales data isn't available, ask whether I can provide
   a shorter period and scale it. Do not silently scale without
   telling me.

4. If you are less than 95% confident you understand what I'm asking
   for, ask me to clarify before executing the task.

5. Verify every arithmetic calculation by working it twice. Round
   final figures to two decimal places.

6. After completing the analysis, flag any SKU where you had to make
   a significant assumption under a "Caveats" section.

=====

PASTE YOUR INVENTORY AND SALES DATA BELOW. Include for each SKU:
SKU name, units sold in the last 12 months (or specify the period),
current units on hand, beginning-of-period units on hand (if
available), COGS per unit, and any notes about planned discontinuation
or seasonal patterns that would affect the turnover interpretation.

[YOUR DATA HERE]