Inventory turnover ratio

• Inventory turnover is a
ratio that measures the
number of times
inventory is sold or
consumed in a given time
period.
• Also known as inventory
turns, stock turn, and
stock turnover
• The inventory turnover
formula is calculated by
dividing the cost of goods
sold (COGS) by average
inventory
COGS
 COGS = Beginning inventory + Additional Inventory Costs - Ending Inventory
The Cost of Goods Sold – also referred to as cost of sales or cost of services – is
the total of all costs incurred in creating your product or services. It does not
include indirect expenses such as overhead, distribution, storage or marketing
costs.
Cogs formula: how to calculate cost of goods sold.
https://www.tradegecko.com/blog/inventory-management/how-to-calculate-cogs
Beginning inventory
https://www.tradegecko.com/blog/inventory-management/how-to-calculate-begi
nning-inventory
• Fixed asset turnover ratio compares the sales revenue a company to its fixed
assets. This ratio tells us how effectively and efficiently a company is using its
fixed assets to generate revenues.
•  This ratio indicates the productivity of fixed assets in generating revenues.
• If a company has a high fixed asset turnover ratio, it shows that the company is
efficient at managing its fixed assets
•  Fixed assets are important because they usually represent the largest component
of total assets.
• Calculation (formula)
• The formula for calculation of fixed asset turnover ratio is given below
• Fixed Asset Turnover Ratio = Sales Revenue / Total Fixed Assets

• https://www.readyratios.com/reference/asset/fixed_asset_turnover.html

• Net sales is the sum of a company's gross sales minus its returns, allowances, and
discounts. Net sales calculations are not always transparent externally. They can
often be factored into the reporting of top line revenues reported on the income