How to Calculate Inventory Turnover Ratio in Excel | FAST!

Описание: In this video, we’ll learn how to calculate the Inventory Turnover Ratio in Excel. First, we calculate the Average Inventory by adding the Beginning Inventory and Ending Inventory and dividing by 2. Then, we use the Inventory Turnover Ratio formula, dividing the Cost of Goods Sold (COGS) by the Average Inventory. This ratio shows how efficiently a company manages its inventory by indicating how many times the inventory is sold and replaced over a period. Understanding this ratio can help you analyze a company’s operational efficiency and inventory management.

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