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


RA -  8 Basic

RA - 15

RA - 25

RA - 35

RA - 50 Professional

RA - 70 Small Business

RA - 75 Expert

RA - 100 Genius

RA - 125 Wizard

RA - 150 Extreme


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

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Inventory Turnover Ratio
calculate inventory turnover ratio

Formula to calculate inventory turnover ratio:


Inventory Turnover Ratio = cost of goods sold / average inventory.


Inventory turnover ratio definition and explanation:


The inventory turnover ratio measures the number of times a company sells its inventory during the year.


A high inventory turnover ratio indicated that the product is selling well.


The inventory turnover ratio should be done by inventory categories or by individual product.


The inventory turnover ratio 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 inventory turnover 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 inventory turnover ratio is listed in our turnover ratios.

The 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 calculate, define and explain.  

The inventory turnover ratio is included in our new spreadsheet which calculates 15 key business ratios, only $30 USD.

The inventory turnover ratio may be included in our custom 1, 3 or 5 period financial statement ratio analysis spreadsheet.

Click here to order excel accounting spreadsheet to calculate 15 ratios  with formulas, definitions, calculations, charts, and explanations for each ratio. (Includes Inventory Turnover Ratio).

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