The Inventory Turnover Calculator is used to calculate the inventory turnover.
In accounting, the inventory turnover is a measure of the number of times inventory is sold or used in a time period, such as a year. It is calculated as the cost of goods sold divided by the average inventory.
The inventory turnover calculation formula is as follows:
Inventory turnover = Average cost of goods sold / Average inventory
The formula for average inventory is as follows:
Average inventory = (Beginning inventory + Ending inventory) / 2