INVENTORY TURNOVER RATIO: Online Inventory Turnover Ratio Calculator
This ratio is obtained by dividing the 'Total Sales' of a company by its 'Total Inventory'. The ratio is regarded as a test of Efficiency and indicates the rapiditity with which the company is able to move its merchandise.
Inventory Turnover Ratio = Net Sales / Inventory
This ratio can also be calculated as:
Inventory Turnover Ratio = Cost of Goods Sold / Inventory