The inventory turnover formula, which is stated as the cost of goods sold (COGS) divided by average inventory, is similar to the accounts receivable formula. When you sell inventory, the balance ...

Also assume that cost of sales is £2000. Inventory turnover formula: \(\frac {\text{Cost of sales}} {\text{Average stock}} = \frac {£2000} {£2250} = 0.9~ \text{times per year}\) This is a low ...

Gaur, Vishal, Marshall L. Fisher, and Ananth Raman. "An Econometric Analysis of Inventory Turnover Performance in Retail Services." Management Science 51, no. 2 (February 2005): 181–194.

Rate of inventory turnover is an efficiency ratio which determines how quickly a firm goes through its stock. A high stock turnover is preferable as this means stock is selling – marketing and ...