This Ratio indicates how many times a company cycles through inventory in a year.
Formula: Cost of Goods Sold x 12 /Inventory
This ratio is especially useful for companies with perishable inventory such as restaurants.
Posted by Bob Carstens on Feb 8, 2014 in |
This Ratio indicates how many times a company cycles through inventory in a year.
Formula: Cost of Goods Sold x 12 /Inventory
This ratio is especially useful for companies with perishable inventory such as restaurants.
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