Inventory turnover ratio: Difference between revisions
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imported>Doug Williamson m (Spacing 22/8/13) |
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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. | 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: | It is calculated as: | ||
[Cost of sales]/Inventory. | [Cost of sales]/Inventory. | ||
== See also == | == See also == | ||
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* [[Efficiency ratio]] | * [[Efficiency ratio]] | ||
* [[Turnover]] | * [[Turnover]] | ||
Revision as of 14:15, 22 August 2013
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:
[Cost of sales]/Inventory.
