Analyze Inventory Turnover
- Inventory turnover formula is a ratio that measures the number of times inventory is sold or consumed in a given time period.
- The average inventory is calculated by dividing the beginning + ending inventory by 2.
- The rate is calculated by dividing the cost of goods sold (COGS) by average inventory.
- The period is the average number of days it takes to sell through inventory.
- Ending product count is changed to 0 if negative.
- Cost of Goods Sold is changed to zero if negative.