Stock cover (days) calculator

How to use it

Enter your figures above — the result updates instantly and nothing leaves your browser. Results are illustrative, not a quote or credit decision.

How to interpret the result

Stock cover expresses how long the value currently held would last against the annual cost of sales, if nothing else came in. A higher figure generally means more of the business's cash is sitting on shelves or in a warehouse rather than being available for other uses; a lower figure means stock is turning over quickly relative to what's held. Neither is automatically good or bad — it depends on the sector, the lead time to reorder, and how predictable demand is.

Because the calculation uses a single annual cost-of-sales figure, the result is an average across the year. A business with a pronounced peak season will see its true position swing well above or below this average at different points in the year, so the figure is best read as a baseline rather than a live snapshot.

Limitations and good practice

The result treats all stock as equally saleable, which is rarely true in practice — slow-moving or obsolete lines can inflate the figure without adding any real cushion. It's worth periodically checking the age and condition of stock behind the total value, not just the total itself.

This calculator also assumes cost of sales is spread evenly through the year. For companies with seasonal buying patterns, it's more useful to compare the same period year-on-year, or to recalculate using cost of sales for a shorter, representative period rather than the full year.

As with other calculators on this site, the output is an illustration to support internal planning and isn't a lending decision. Reviewing stock cover alongside supplier payment terms gives a fuller picture of how working capital is tied up across the business.