Shopify (XSWX:SHOP) Inventory Turnover: 77.33 (As of Mar. 2026)


XSWX:SHOP Shopify Inc XSWX:SHOP
85 GF Score
Price CHF98.83
GF Value CHF118.45
! 2 Warning Signs
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What is Shopify Inventory Turnover?

Shopify XSWX:SHOP +15.00% 85 Inventory Turnover is 77.33 as of Mar. 2026. GuruFocus rates XSWX:SHOP with a GF Score™ of 85/100 and a GF Value™ of CHF118.45. The stock has 2 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Shopify's Cost of Goods Sold for the three months ended in Mar. 2026 was CHF1,624 Mil. Shopify's Average Total Inventories for the quarter that ended in Mar. 2026 was CHF21 Mil. Shopify's Inventory Turnover for the quarter that ended in Mar. 2026 was 77.33.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Shopify's Days Inventory for the three months ended in Mar. 2026 was 1.18.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Shopify's Inventory-to-Revenue for the quarter that ended in Mar. 2026 was 0.01.

Shopify  (XSWX:SHOP) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Shopify's Days Inventory for the three months ended in Mar. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Mar. 2026 )/Cost of Goods Sold (Q: Mar. 2026 )*Days in Period
=21/1624*365 / 4
=1.18

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Shopify's Inventory to Revenue for the quarter that ended in Mar. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=21 / 3170
=0.01

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Shopify Inventory Turnover Related Terms

Shopify Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Shopify's Inventory Turnover can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Shopify Inventory Turnover Chart

Shopify Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 186.58 195.91 255.36

Shopify Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Inventory Turnover Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.81 0.00 0.00 94.24 77.33
XSWX:SHOP
85GF Score
Shopify Inc XSWX:SHOP
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Shopify Inventory Turnover Calculation

Shopify's Inventory Turnover for the fiscal year that ended in Dec. 2025 is calculated as

Inventory Turnover (A: Dec. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Dec. 2025 ) / ((Total Inventories (A: Dec. 2024 ) + Total Inventories (A: Dec. 2025 )) / count )
=6001 / ((26 + 21) / 2 )
=6001 / 23.5
=255.36

Shopify's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

Inventory Turnover (Q: Mar. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Mar. 2026 ) / ((Total Inventories (Q: Dec. 2025 ) + Total Inventories (Q: Mar. 2026 )) / count )
=1624 / ((21 + 0) / 1 )
=1624 / 21
=77.33

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 77.33 mean?
Shopify (XSWX:SHOP) has a Inventory Turnover of 77.33 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Shopify and its competitors.
Is Shopify's Inventory Turnover too high?
Shopify's current Inventory Turnover is 77.33. Overall, Shopify has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does Shopify's Inventory Turnover compare to ?
Shopify's Inventory Turnover of 77.33 can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory Turnover for a Software company?
A good Inventory Turnover depends on the Software industry context. However, Inventory Turnover should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Shopify and its competitors. Shopify's current Inventory Turnover is 77.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shopify stock overvalued right now?
Shopify (XSWX:SHOP) has a current Inventory Turnover of 77.33. The stock's GF Value™ is CHF118.45, compared to a current price of CHF98.83 — trading 16.6% below its estimated fair value. The current Inventory Turnover is 77.33. Shopify's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Shopify (XSWX:SHOP), the current Inventory Turnover is 77.33 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Shopify (XSWX:SHOP) Overvalued in 2026?

Based on GuruFocus' analysis, Shopify stock appears to be undervalued. The current stock price of CHF98.83 is trading 16.6% below its estimated GF Value™ of CHF118.45.

Key valuation signals for XSWX:SHOP:

  • Inventory Turnover: 77.33
  • GF Value™: CHF118.45 vs. price of CHF98.83 (16.6% below fair value)
  • GF Score™: 85/100 with 2 warning signs

No single metric tells the full story. See the XSWX:SHOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Shopify Business Description

Comparable Companies
Address 151 O\'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P 2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.
85GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF98.83
Price
CHF118.45
GF Value