Accounting Dictionary - Letter I

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Inventory turnover
measures the rate at which a company "uses" its inventory in operations. Inventory turnover measures the number of times per year that inventory turns over. To calculate this ratio, the cost of goods sold is divided by the average inventory. The average inventory is determined by adding beginning inventory to ending inventory and dividing the result by two.
Go Back
Don't see the term you are looking for? Try searching our entire website:
Not a member?
See why people join our
online accounting course:
Free Study Notes
Download free accounting study notes by signing up for our free newsletter (example):
First Name:
E-mail:
We never share or sell your e-mail to third parties.