Sep 10, 2025 · Inventory turnover ratio measures how efficiently a company uses its inventory by dividing the cost of goods sold by the average inventory value during a set period.

Jun 27, 2025 · To find your inventory turnover ratio, use this formula: Inventory turnover ratio = Cost of goods sold ÷ Average inventory. A higher ratio means your products sell quickly or …

Jul 26, 2024 · The inventory turnover ratio is calculated by dividing the cost of goods by average inventory for the same period. A higher ratio tends to point to strong sales and a lower one to …

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory. Master the essentials of financial planning and analysis with our comprehensive course. Delve into key topics such as …

You can calculate the inventory turnover ratio by dividing the inventory days ratio by 365 and flipping the ratio. In this example, the inventory turnover ratio = 1 / (73/365) = 5.

The inventory turnover ratio formula is calculated by dividing the cost of goods sold for a period by the average inventory for that period. Average inventory is used instead of ending inventory …

Apr 18, 2025 · Getting the inventory turnover ratio right involves figuring out the cost of goods sold (COGS) and the average inventory value. The formula, COGS divided by the average …