Inventory turnover ratio: Difference between revisions
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It is calculated as: | It is calculated as: | ||
Inventory turnover = cost of sales / inventory. | |||
Revision as of 17:41, 27 May 2017
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:
Inventory turnover = cost of sales / inventory.
