Question
The utilization of the inventory turnover ratio can provide the numbers you are asking for. By taking the cost of goods sold and dividing it
The utilization of the inventory turnover ratio can provide the numbers you are asking for. By taking the cost of goods sold and dividing it by the average value of the inventory, the organization can identify how well it is turning over its merchandise (Young et al, 2019). This can help an organization avoid things like overstocking or understocking. It can also provide improved distribution when broken down to regional or market areas.
Young, S. D., Cohen, J., & Bens, D. A. (2019).Corporate Financial Reporting and analysis a Global Perspective. Wiley.
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