Inventory Turnover

            

Inventory Turnover Formula

\( IT \;=\;  COGS \;/\; AVI \)

Symbol

\( IT \) = inventory turnover

\( AVI \) = average value of inventory

\( COGS \) = cost of goods sold

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