# How to Calculate Inventory Turns?

To calculate inventory turns by using the formula Inventory turns= Cost of Goods Sold / Average Inventory. The average inventory is calculated by dividing the sum of inventory at the beginning of the period and the end of the period by 2. This helps a company know how well they are doing and if they need to adjust how they do things for the next period.
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 If you are planing on calculating inventory turns it will take some time to understand it. Are you planning on doing inventory? If so this is important. For more information look http://answers.ask.com/Science/Chemistry/how_to_ca...
 1. Decide the reporting period you want to analyze. The reporting period can be any time interval you select—monthly, quarterly, or annually. 2. Tally the inventory on hand, http://www.ehow.com/how_4423041_define-inventory-t...
 The formula for calculating liquor cost is: Beginning inventory minus ending inventory plus purchases (cost of goods sold) divided by liquor sales equals liquor cost, which should http://wiki.answers.com/Q/What_is_the_formula_for_...
 Inventory Turnover=Cost of Goods Sold divided by the Average Inventory http://www.chacha.com/question/what-is-the-formula...
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Video Transcript. Let's talk about inventory turn. In measuring the efficiency of our business, one of the measurement tools that we use is the inventory turn. ...
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