Inventory turnover ratio: Difference between revisions
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imported>Doug Williamson (Expand formula for clarity.) |
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''Financial ratio analysis.'' | |||
Inventory turnover ratio is 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. | The inventory turnover ratio indicates the number of times stock is completely replaced in a year. | ||
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* [[Activity ratio]] | * [[Activity ratio]] | ||
* [[DIO]] | * [[DIO]] | ||
* [[ | * [[Inventory]] | ||
* [[Inventory days]] | |||
* [[Inventory management]] | |||
* [[Management efficiency ratio]] | |||
* [[Turnover]] | * [[Turnover]] | ||
[[Category:Accounting,_tax_and_regulation]] | |||
Latest revision as of 16:25, 3 February 2019
Financial ratio analysis.
Inventory turnover ratio is 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.
