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Inventory Turnover and Average Inventory Calculator

<-- Beginning Inventory
<-- Ending Inventory
<-- Cost of Goods Sold
  

How does the Inventory Turnover and Average Inventory Calculator work?

Calculates inventory turnover ratio and average inventory
This calculator has 3 inputs.

What 3 formulas are used for the Inventory Turnover and Average Inventory Calculator?

  1. Average Inventory = (Beginning Inventory + Ending Inventory)/2
  2. Inventory turnover ratio = Cost of Goods Sold/Average Inventory
  3. Average days to sell the inventory = 365/Inventory Turnover Ratio

For more math formulas, check out our Formula Dossier

What 3 concepts are covered in the Inventory Turnover and Average Inventory Calculator?

cost
an amount that has to be paid or spent to buy or obtain something
inventory
a complete list of items such as property, goods in stock, or the contents of a building
turnover



Inventory Turnover and Average Inventory Calculator Video