Merchandise Inventory Turnover Ratio
Merchandise Inventory Turnover Ratio Formula |
\( MI \;=\; \dfrac{ COS }{ A }\) |
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.