The inventory turnover ratio: Is used to analyze profitability Is used to measure solvency Measures bow quickly a company turns aver its merchandise inventory Validates the acid-test ratio Calculation depends on the company's inventory valuation method Toys 'R' Us had cost of goods sold of S9.421 million, ending inventory of $2,089 million and average inventory of $1,965 million. Its inventory turnover equals 0.21 4.51 4.79 76 1 days 80.9 days