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nventory turnover is a ratio s [...]

by - 02/29/2016 08:46:12

nventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period. The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand or "inventory turnover days." Generally it is calculated as: Inventory Turnover = Sales / Inventory