Topic: Inventory Turnover Profitability
Answers to Common Questions
What is Inventory Turnover?
Inventory turnover is the amount of times the inventory of a company gets sold or "turned over". The faster the turnover, the more sales a company has; the lower the turnover, the less sales. Read More »
Source: http://answers.ask.com/Business/Finance/what_is_inventory_turnove...
How to Calculate Inventory Turnover
Inventory turnover is represented by a calculated number of how many times a company cycles through its inventory during a given financial reporting period. It can be measured for manufacturing materials and supplies, work in progress, fini... Read More »
Source: http://www.ehow.com/how_2365170_calculate-inventory-turnover.html
Why Is it Important to Control Inventory Turnover?
Controlling inventory turnover is one of the fastest ways to get more money out of a business without having to increase sales. It's also a key way to grow a business faster. High inventory turnover means less money required for future grow... Read More »
Source: http://www.ehow.com/about_6573322_important-control-inventory-tur...
Answers to Other Common Questions
Inventory turnover shows how fast a company's inventory converts to sales. Companies want higher inventory turnover because it produces more revenue and keeps down the cost of maintaining inventory. Companies with lower inventory turnover t... Read More »
Source: http://www.ehow.com/how_6460646_calculate-inventory-turnover-rate...
Inventory turnover ratio is a common investing term. Read on to learn how to define inventory turnover ratio. Read More »
Source: http://www.ehow.com/how_2364413_define-inventory-turnover-ratio.h...
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory and Average Inventory = ( Beginning Inventory + Ending Inventory ) / 2 Read More »
Source: http://wiki.answers.com/Q/What_is_the_inventory_turnover_ratio
Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory Read More »
Source: http://wiki.answers.com/Q/How_to_calculate_Inventory_turnover_per...
Slow inventory turnover means that you have too much capital invested in inventory. You could reduce inventory levels and put that money to better use - marketing, reduction of debt, etc Read More »
Source: http://wiki.answers.com/Q/Why_is_slow_inventory_turnover_a_concer...
The inventory turnover rate measures the number of times we have turned our inventory during the past 12 months. Thanks! Read More »
Source: http://www.chacha.com/question/what-is-the-effect-of-the-inventor...
Inventory Turnover=Cost of Goods Sold divided by the Average Inventory Read More »
Source: http://www.chacha.com/question/what-is-the-formula-for-inventory-...
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