A Step By Step Inventory Turnover Ratio Calculation

 Inventory Turnover Ratio Calculator

This online tool for the calculation of inventory turnover ratio.

Step by Step calculation

Formula To Calculate Inventory Turnover Ratio :

Inventory Turnover Ratio = (Cost of Goods Sold ÷ Avg Inventory)

This calculation used to understand how fast a company sells its Inventory whereby a higher ratio implies either strong sales (or) insufficient Inventory resulting in loss of business and a lower ratio implying weak sales, excess Inventory or lack of demand for the company product.