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What is Inventory Turnover Ratio
Inventory Turnover Ratio is a term that indicates how many times each item of inventory is sold and restocked during the year.

Inventory Turnover Ratio is a term that indicates how many times each item of inventory is sold and restocked during the year.

Calculation:

Inventory Turnover Ratio = Sales / Inventory (Stocks)

Use of the Inventory Turnover Ratio in practice: In the enterprise it used by CFO in financial analysis to analyze ratios.

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Last update: 17.03.2016

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