For example, if your company sold $500,000 worth of products and your average inventory equals $190,000, divide $500,000 by $190,000 to find your inventory turns over about 2.63 times per quarter ...

Continue reading ->The post How to Calculate Inventory Turnover Ratio appeared first on SmartAsset Blog. The number of times a business sells and replaces its stock over a given time period is its ...

The inventory turnover ratio helps businesses and investors understand how many times, in a given period, items have been sold and restocked by a company. Find out why it matters.

Inventory turnover measures how fast a company sells inventory and how analysts compare it to industry averages. A low turnover implies weak sales and possibly excess inventory, also known as ...

Maintaining inventory is a huge cost for many businesses, especially in the retail industry. The longer a product sits on store shelves, the more it deteriorates, and the greater the chances are ...

Inventory turnover ratio of a company determines the frequency of sales happening at a company. The ratio also suggests how efficiently and quickly the management is able to convert its inventory ...

Notice that Tiffany & Co.'s low inventory turnover ratio of 0.7 means that its average dollar of inventory sits in its possession for a very long time -- more than 521 days, on average.

How to Calculate Inventory Turnover Rates. In general, inventory is that part of your business assets consisting of raw materials and finished products. Inventory turnover rate or ratio is simply ...

Axel Tracy's book, "Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to Analyse Any Business on the Planet," provided "Inventory Turnover" as the first of several efficiency ratios.