inventory turnover problem?
It's a annual report:
Net revenue=$49205
Cost of revenue(Cost of good sold)=$40190
production materials on hand=$228
Work-in-process and finished goods on hand=$231
Days of supply in inventory=4 days
How do I calculate the inventory turnover?
Comments
Cost of Goods Sold / Avg Inventory
40190 / 459 (228 + 231) = 87.6 times (but that's not very realistic).
But if inventory is only 4 day's supply, that's 90 times a year. So 87 looks OK.
u hav to recalculate that