Regarding of financial
MPR Sanjay Kumar (3145 Points)
02 December 2021
🌟 what is mean by inventory turnover ratio why we using these kind of ratio in company what is the formula for this
4 Replies
sabyasachi mukherjee
(27781 Points)
Replied 02 December 2021
Purpose of inventory turnover is to.ascertain the proportion of stock to cost of goods sold.
If I can determine that I can ascertain whether my stock holding is high or low in proportion to the turnover.
Here cost of goods sold is determined to negate the profit from turnover.
If I can determine that I can ascertain whether my stock holding is high or low in proportion to the turnover.
Here cost of goods sold is determined to negate the profit from turnover.
MPR Sanjay Kumar
(3145 Points)
Replied 02 December 2021
Inventory turnover ratio is equal to cost of stock of material consumed / average stock of material.....this formula is correct or not..
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