Inventory Turnover Ratio Calculator

✖The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company.ⓘ Cost of Goods Sold [COGS]			+10% -10%
✖Inventory is the goods and materials that a business holds for the ultimate goal of resale.ⓘ Inventory [I]			+10% -10%

✖Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period.ⓘ Inventory Turnover Ratio [ITR]

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Formula

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Inventory Turnover Ratio

Formula

`"ITR" = "COGS"/"I"`

Example

`"0.888889"="40000"/"45000"`

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Inventory Turnover Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Inventory Turnover Ratio = Cost of Goods Sold/Inventory
ITR = COGS/I
This formula uses 3 Variables

Variables Used

Inventory Turnover Ratio - Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period.
Cost of Goods Sold - The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company.
Inventory - Inventory is the goods and materials that a business holds for the ultimate goal of resale.

STEP 1: Convert Input(s) to Base Unit

Cost of Goods Sold: 40000 --> No Conversion Required
Inventory: 45000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ITR = COGS/I --> 40000/45000

Evaluating ... ...

ITR = 0.888888888888889

STEP 3: Convert Result to Output's Unit

0.888888888888889 --> No Conversion Required

FINAL ANSWER

0.888888888888889 ≈ 0.888889 <-- Inventory Turnover Ratio

(Calculation completed in 00.004 seconds)

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Created by Team Softusvista

Softusvista Office (Pune), India

Team Softusvista has created this Calculator and 600+ more calculators!

Verified by Himanshi Sharma

Bhilai Institute of Technology (BIT), Raipur

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< 5 Turnover Ratios Calculators

Working Capital Turnover Ratio

Go Working Capital Turnover Ratio = (Net Sales/Average Working Capital)*100

Receivables Turnover Ratio

Go Receivables Turnover Ratio = Net Sales/Average Accounts Receivables

Fixed Asset Turnover Ratio

Go Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets

Inventory Turnover Ratio

Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory

Total Asset Turnover

Go Total Asset Turnover = Sales/Total Assets

Inventory Turnover Ratio Formula

Inventory Turnover Ratio = Cost of Goods Sold/Inventory
ITR = COGS/I

How to Calculate Inventory Turnover Ratio?

Inventory Turnover Ratio calculator uses Inventory Turnover Ratio = Cost of Goods Sold/Inventory to calculate the Inventory Turnover Ratio, Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period. Inventory Turnover Ratio is denoted by ITR symbol.

How to calculate Inventory Turnover Ratio using this online calculator? To use this online calculator for Inventory Turnover Ratio, enter Cost of Goods Sold (COGS) & Inventory (I) and hit the calculate button. Here is how the Inventory Turnover Ratio calculation can be explained with given input values -> 0.888889 = 40000/45000.

FAQ

What is Inventory Turnover Ratio?

Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period and is represented as ITR = COGS/I or Inventory Turnover Ratio = Cost of Goods Sold/Inventory. The Cost of Goods Sold is the direct costs attributable to the production of the goods sold by a company & Inventory is the goods and materials that a business holds for the ultimate goal of resale.

How to calculate Inventory Turnover Ratio?

Inventory Turnover Ratio measures the number of times your inventory "turned-over" during a time period is calculated using Inventory Turnover Ratio = Cost of Goods Sold/Inventory. To calculate Inventory Turnover Ratio, you need Cost of Goods Sold (COGS) & Inventory (I). With our tool, you need to enter the respective value for Cost of Goods Sold & Inventory and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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