A Step By Step Inventory Turnover Ratio Calculation
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Inventory Turnover Ratio Calculator
This online tool for the calculation of inventory turnover ratio.
Step by Step calculation
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Formula To Calculate Inventory Turnover Ratio :
Inventory Turnover Ratio = (Cost of Goods Sold ÷ Avg Inventory)
This calculation used to understand how fast a company sells its Inventory whereby a higher ratio implies either strong sales (or) insufficient Inventory resulting in loss of business and a lower ratio implying weak sales, excess Inventory or lack of demand for the company product.
See Also
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