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The annual inventory turnover in the retail painting industry is obtained by dividing the Annual Cost of Sales by the Average Inventory Level. A low inventory turnover ratio is a signal of inefficiency.

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Q: What is the annual inventory turnover in the retail painting industry?
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How do you calculate inventory turnover?

This is a very simple calculation. Days to Sell Inventory(or Days in Inventory) = Average Inventory / Annual Cost of Goods Sold /365 Average Inventory = (Beginning Inventory + Ending Inventory) / 2 To calculate this ratio for a quarter instead of a year use the following variation: Days to Sell Inventory (or Days in Inventory) = Average Inventory / "Quarterly" Cost of Goods Sold /"90" Average Inventory = (Beginning Inventory + Ending Inventory) / 2


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