Explain the purpose of the inventory turnover ratio .
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Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,...
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The inventory turnover ratio is used to determine how many times inventories are ...View the full answer
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