Saesipapicthqn

Inventory turnover is a very useful way of seeing how efficient a firm is at converting its inventory into sales The ratio can show us the number of times and inventory has been sold over a particular period, eg, 12 months Comparing the Inventory Turnover Ratio to the Days Sales of Inventory Days sales of inventory―also known as days inventory―is the number of days it takes to turn inventory into sales It's calculated by taking the average inventory, dividing it by the cost of goods sold, and then multiplying the result by 365 daysFor instance a company has an annual cost of sold goods of $50,000, while its beginning inventory balance is $10,000 and its inventory balance at the end of the fiscal year is $5,000 Days in inventory 55 days Inventory turnover ratio 667 Total value of the inventory sold during this fiscal year $55, 17 Feb, 15 What Is Inventory Turnover Inventory Turnover Formula In 3 Steps Determine the inventory turnover and the number of days sales in inventory