Inventory turnover ratio

From ACT Wiki
Revision as of 14:19, 23 October 2012 by imported>Administrator (CSV import)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

An example of an activity ratio or management efficiency ratio. The inventory turnover ratio indicates the number of times stock is completely replaced in a year.

It is calculated as:

[Cost of sales]/Inventory.

See also