Inventory Turnover Ratio Template

Prepared by Dheeraj Vaidya, CFA, FRM

dheeraj@wallstreetmojo.com

visit - www.wallstreetmojo.com
Cool Gang Inc. has the following information –

Cost of Goods Sold - $600,000

The beginning inventory - $110,000
The ending inventory - $130,000

Find out the inventory turnover ratio.

First we will find out the average inventory of Cool Gang

Inventory (Beginning) $ 110,000

Inventory (Ending) $ 130,000

Average Inventories 120000

Using the inventory turnover ratio, we get –

Cost of Goods Sold 600000

Average Inventories 120000

Inventory Turnover 5