Merchandise Inventory Turnover Ratio

       

Merchandise Inventory Turnover Ratio Formula

\( MI \;=\;  COS \;/\; A \)

Symbol

\( MI \) = merchandise inventory turnover ratio

\( A \) = average

\( COS \) = cost of sales

Merchandise inventory turnover ratio, abbreviated as MI, measures how well a company is turning their inventory into sales.