Inventory turnover ratio: Difference between revisions
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imported>Doug Williamson (Expand formula for clarity.) |
imported>Doug Williamson (Link with Inventory and Inventory management page.) |
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* [[DIO]] | * [[DIO]] | ||
* [[Efficiency ratio]] | * [[Efficiency ratio]] | ||
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* [[Turnover]] | * [[Turnover]] | ||
Revision as of 10:01, 31 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.
