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## Credits

Softusvista Office (Pune), India
Team Softusvista has created this Calculator and 500+ more calculators!
Bhilai Institute of Technology (BIT), Raipur
Himanshi Sharma has verified this Calculator and 500+ more calculators!

## 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 2 Variables
Variables Used
Cost of goods sold- The cost of goods sold are 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: 4875444 --> No Conversion Required
Inventory: 45 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
ITR = COGS/I --> 4875444/45
Evaluating ... ...
ITR = 108343.2
STEP 3: Convert Result to Output's Unit
108343.2 --> No Conversion Required
108343.2 <-- Inventory Turnover Ratio
(Calculation completed in 00.016 seconds)

## < 5 Other formulas that you can solve using the same Inputs

Beginning Inventory
beginning_inventory = Cost of goods sold-Purchases+Ending Inventory Go
quick_ratio = (Current Assets-Inventory)/Current Liabilities Go
Quick Ratio
quick_ratio = (Current Assets-Inventory)/Current Liabilities Go
Business Gross Profit Margin when Revenue and Cost of Goods Sold are given
gross_profit_margin = (Revenue-Cost of goods sold)/Revenue Go
Gross Profit Margin when Revenue and Cost of Goods Sold are given
gross_profit_margin = (Revenue-Cost of goods sold)/Revenue Go

### 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 and 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) and Inventory (I) and hit the calculate button. Here is how the Inventory Turnover Ratio calculation can be explained with given input values -> 108343.2 = 4875444/45.

### 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 are the direct costs attributable to the production of the goods sold by a company and 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) and Inventory (I). With our tool, you need to enter the respective value for Cost of goods sold and 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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