How the Inventory Cash Exposure Calculator works
Inventory is cash in a different form. This calculator shows the total locked up, including what is still on order, and flags the part that is turning stale.
Formula
- Cash tied up = (Units on hand + Units on order) × Landed cost
- Days of cover = Units ÷ Average daily sales
Example
$13,000 tied up, about 167 days of cover.
Units on hand: 1200Units on order: 800Units older than 90 days: 200Landed cost per unit: 6.5Monthly storage per unit: 0.2Average daily sales: 12Selling price: 24.99
Frequently asked questions
What is a healthy days of cover?
Roughly lead time plus safety stock plus one reorder cycle: 60–120 days for most FBA sellers.