Inventory Turnover Ratio Calculator

✖The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company.ⓘ Cost of Goods Sold [COGS]			+10% -10%
✖Inventory is the goods and materials that a business holds for the ultimate goal of resale.ⓘ Inventory [In]			+10% -10%

✖Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period.ⓘ Inventory Turnover Ratio [ITR]

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Inventory Turnover Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Inventory Turnover Ratio = Cost of Goods Sold/Inventory
ITR = COGS/In
This formula uses 3 Variables

Variables Used

Inventory Turnover Ratio - Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period.
Cost of Goods Sold - The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company.
Inventory - Inventory is the goods and materials that a business holds for the ultimate goal of resale.

STEP 1: Convert Input(s) to Base Unit

Cost of Goods Sold: 40000 --> No Conversion Required
Inventory: 45000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ITR = COGS/In --> 40000/45000

Evaluating ... ...

ITR = 0.888888888888889

STEP 3: Convert Result to Output's Unit

0.888888888888889 --> No Conversion Required

FINAL ANSWER

0.888888888888889 ≈ 0.888889 <-- Inventory Turnover Ratio

(Calculation completed in 00.004 seconds)

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Created by Team Softusvista

Softusvista Office (Pune), India

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Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

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< Operating and Turnover Ratios Calculators

Working Capital Turnover Ratio

LaTeX Go Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100

Inventory Turnover Ratio

LaTeX Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory

Capital Intensity

LaTeX Go Capital Intensity = Total Average Assets/Revenue

Total Asset Turnover

LaTeX Go Total Asset Turnover = Sales/Total Assets

< Important Formulas of Financial Ratios Calculators

Free Cash Flow to Firm

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Debt to Equity Ratio

LaTeX Go Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100

Free Cash Flow

LaTeX Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures

Debt to Assets Ratio

LaTeX Go Debt to Assets Ratio = Total Liabilities/Total Assets

Inventory Turnover Ratio Formula

LaTeX Go

Inventory Turnover Ratio = Cost of Goods Sold/Inventory
ITR = COGS/In

How to Calculate Inventory Turnover Ratio?

Inventory Turnover Ratio calculator uses Inventory Turnover Ratio = Cost of Goods Sold/Inventory to calculate the Inventory Turnover Ratio, Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period. Inventory Turnover Ratio is denoted by ITR symbol.

How to calculate Inventory Turnover Ratio using this online calculator? To use this online calculator for Inventory Turnover Ratio, enter Cost of Goods Sold (COGS) & Inventory (In) and hit the calculate button. Here is how the Inventory Turnover Ratio calculation can be explained with given input values -> 0.888889 = 40000/45000.

FAQ

What is Inventory Turnover Ratio?

Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period and is represented as ITR = COGS/In or Inventory Turnover Ratio = Cost of Goods Sold/Inventory. The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company & Inventory is the goods and materials that a business holds for the ultimate goal of resale.

How to calculate Inventory Turnover Ratio?

Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period is calculated using Inventory Turnover Ratio = Cost of Goods Sold/Inventory. To calculate Inventory Turnover Ratio, you need Cost of Goods Sold (COGS) & Inventory (In). With our tool, you need to enter the respective value for Cost of Goods Sold & Inventory and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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