Inventory turnover ratio formula (ID: 264) [Edit]
Description of the Inventory turnover ratio formula
Formula for the calculation of a company's inventory turnover ratio.
Formula
\[ \text{Inventory turnover} = \frac{\text{Cost of goods sold}}{\text{Inventory}} \ \]
Additional information related to this formula
Related financial formulas
Accounts receivable turnover • Fixed assets turnover • Total assets turnover