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Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory

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17y ago

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How can you calculate number of days in selling period?

# of days in the business year divided by the inventory turnover.


Is inventory turnover the same as inventory conversion period?

Inventory conversion period tells that how many days it is require to convert inventory to finished goods while inventory turnover tell in number of times that how many times inventory turned into finished goods in one fiscal year.


How to calculate average change IN INVENTORY?

You calculate average change in inventory by dividing the turnover by how many times it has turned over. The number you get is the average.


How do you calculate stock turnover period?

Stock turnover period = Closing stock x 365 / cost of sales


Is Increasing in turnover is good or bad?

An increase in inventory turnover is good. This means that over a certain period of time, the amount of times the inventory of a company was sold and replaced has increased.


When calculating the inventory turnover at cost the first step is to calculate the?

Cost of goods sold


When calculation the inventory turnover at cost the first step is to calculate the?

Cost of goods sold


When calculating the inventory turnover at cost the first step is to calculate the ----?

Cost of goods sold


When calculating the inventory turnover at cost the first step is to calculate the -?

Cost of goods sold


What is finished goods inventory turnover ratio?

A finished goods inventory turnover ratio is the rate that the inventory is used over a period of time. This measurement shows a company how it is doing in general. If there is too much inventory, then a company isn't doing that well.


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


How do you calculate stock holding ratio?

Stock holding ratio is the same as inventory turnover ratio. To find this ratio one must find the cost of goods sold to a business and its average inventory over a certain time period.