# Inventory Turnover

Written by Jerry Ratzlaff on . Posted in Manufacturing Engineering

Inventory turnover, abbreviated as IT, is the number of times a business sells or uses inventory over the course of a defines time period.

## inventory turnover Formula

 $$\large{ IT = \frac{ COGS }{ AVI } }$$

### Where:

$$\large{ IT }$$ = inventory turnover

$$\large{ AVI }$$ = average value of inventory

$$\large{ COGS }$$ = cost of goods sold