Inventory Turn Ratio & Return On Assets Month Sales Revenue Sales (@COGS) Jan $875,000 $700,000 Feb $910,000 $728,000 Mar $700,000 $560,000 Apr $400,000 $320,000 May $375,000 $300,000 Jun $300,000 $240,000 $3,560,000 $2,848,000 ITR = COGS / Average Inventory ITR = $2,848,000 / $223,833 ITR = 12.72 Another Scenario: Revised: 25% reduction in Inventory (no change in Net Profit Month Sales Revenue Sales (@COGS) Jan $875,000 $700,000