Inventory turnover equals the cost of goods sold divided by average inventory levels. Inventory days of supply is inventory divided by the cost of one day's goods sold.

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 ...

An asset utilization ratio that indicates how long goods remain in inventory or unsold. The average inventory period ratio is measured by dividing days in a year by inventory turnover, (365 ...

The inventory turnover ratio is an efficiency measurement that indicates the average number of sales cycles (based on the CoGS) the on-hand inventory will support.

4. Average days in inventory The 60 dealer groups showed an average days in inventory of 37 days — a figure that suggests room for improvement.

The GMC inventory level is down from the 86 days supply at dealerships in November 2024. It’s also slightly below the 73 days supply observed in December 2023.

Despite this, the average days’ supply fell by 5.9% to 85 days. That said, many automakers are sitting on more than this industry-wide average, while a few brands are managing tighter inventories.