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The age of inventory ratio is included in the following highlighted FINANCIAL STATEMENT RATIO SPREADSHEETS

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See list of other ratio calculation formulas, definitions and explanations!

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calculate age of inventory

Turn your Financial Statements into a decision enhancing business tool! See our selection of ratio spreadsheet tools!

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Age of Inventory Ratio
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Formula to calculate age of inventory ratio:

 

Age of Inventory  = 365 days / inventory turnover ratio

 

Age of inventory ratio definition and explanation: 

 

The Age of Inventory shows the number of days that inventory is held prior to being sold.

 

An increasing age of inventory ratio indicates a risk in the company's inability to sell its products. Individual inventory items should be examined for obsolete or overstocked items.

 

A decreasing age of inventory may represent under-investment in inventory. 

The Age of Inventory Ratio is also referred to as the Number of Days Inventory, Days Inventory or Inventory Holding Period.

The Age of Inventory ratio is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. 

The age of inventory is included in the book "Financial Statement Analysis including over 200 ratios" available for $35 (freight included). Download for $7. Spreadsheet calculators also available.

The age of inventory ratio (also known as Number of Days Inventory, Days Inventory or Inventory Holding Period) is listed in our efficiency ratios.

 
The age of inventory ratio and other ratios are key to understanding financial statements. Our ratio calculation spreadsheets reduce time and effort in calculating decision making ratios. They reduce risk for lenders and investors and enable owners, managers and consultants to increase productivity and business profits. These spreadsheets are bargain priced to provide a huge return on investment. Click here for more details.

Spreadsheets to calculate ratios (includes formulas, definitions, explanations and charts):

See list of ratios , or the financial statement ratio analysis spreadsheets which are not highlighted in the left column, to see which other ratios our spreadsheets define, calculate and explain.  

The age of inventory (inventory holding period) is included in our new spreadsheet which calculates 15 key business ratios, only $30 USD.

The age of inventory ratio, number of days inventory, days inventory or inventory holding period ratio may be included in our custom 1, 3 or 5 period financial statement ratio analysis spreadsheet.

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