Insert the information in the form and the calculator will determine the inventory turnover ratio.

What is the inventory turnover ratio?

The inventory turnover ratio is a financial ratio that measures the ability of a company to efficiently manage it's stock of goods.

How to calculate inventory turnover ratio?

To calculate inventory turnover ratio you should use the following formula:
inventory turnover ratio = cost of goods sold / average inventory

Why use inventory turnover ratio?

The inventory turnover ratio is used in order to determine the ability of a company to manage it's stock of goods.