# Inventory Turnover Ratio – Calculator

The formula for calculating Inventory Turnover ratio is

= Cost of goods sold / Average Inventory

where Average Inventory is = ( Beginning Inventory + Ending Inventory ) / 2

In the calculator below insert the value of cost of goods sold, Beginning inventory and Ending Inventory for the year to arrive at the Inventory Turnover Ratio.

In the calculator below insert the value of cost of goods sold and the Average inventory during the year to arrive at the Inventory Turnover Ratio.

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