Inventory turnover ratio: Difference between revisions
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imported>Doug Williamson (Expand first sentence.) |
imported>Doug Williamson (Add header.) |
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''Financial ratio analysis.'' | |||
Inventory turnover ratio is an example of an ''activity ratio'' or ''management efficiency ratio''. | Inventory turnover ratio is an example of an ''activity ratio'' or ''management efficiency ratio''. | ||
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* [[DIO]] | * [[DIO]] | ||
* [[Inventory]] | * [[Inventory]] | ||
* [[Inventory days]] | |||
* [[Inventory management]] | * [[Inventory management]] | ||
* [[Management efficiency ratio]] | * [[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.
