Inventory turnover ratio formula
Financial acronyms
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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