Inventory Turnover Formula
Equation for calculate inventory turnover is,
AI = (BI + EI) / 2
IT = GSc / AI
AI = Average Inventory
BI = Beginning Inventory
EI = Ending Inventory
IT = Inventory Turnover
GSc = Cost of goods sold
AI = Average Inventory
BI = Beginning Inventory
EI = Ending Inventory
IT = Inventory Turnover
GSc = Cost of goods sold