Inventory turnover
Inventory turnover: use period cost of goods sold, average inventory at cost. Review the formula, worked example and calculation steps.
Inputs
Use the units shown—
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Formula & explanation
Inventory turnover = COGS / average inventory
Variables & units
- Period cost of goods sold
- currency · minimum 0, maximum 1000000000000
- Average inventory at cost
- currency · minimum 0.000001, maximum 1000000000000
Worked example
COGS120000 and average inventory20000 gives6 turns.
Assumptions
Use cost consistently in numerator and denominator.
Formula version 1.0.0. JavaScript floating-point arithmetic applies. Results display up to 6 decimal places; stored values retain available precision. Use the units shown.
Practice with an example
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