Inventory Turnover

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

\(\large{ IT =  \frac{ COGS }{ AVI }   }\)

Symbol

\(\large{ IT }\) = inventory turnover

\(\large{ AVI }\) = average value of inventory

\(\large{ COGS }\) = cost of goods sold