Answer: Inventory turnover days
Explanation:
How do you calculate inventory turnover days?
With those variables identified, you can now use this formula to calculate the inventory turnover rate:
- Cost of goods sold / average inventory = inventory turnover rate.
- (Quantity of goods sold / quantity of goods on hand) x 100 = sell-through rate.
- (Average inventory / cost of goods sold) x 365 = days of inventory.
