Thread: Inventory Turnover

Hi, could any one help for the inventory turnover information, I just wonder how to calculate monthly inventory turnover, or it supposed to calculate yearly only? In order to review monthly efficiency of invesment in stock, how is the best way to know that?


Thanks in advance

The Inventory Turnover is an equation that equals the cost of goods sold divided by the average inventory. Average inventory equals beginning inventory plus ending inventory divided by 2.




Inventory Turnover

= Cost of Goods Sold /Average or Current Period Inventory