Cost of goods sold/average inventory is the formula for which of these analytical measures?
A)Inventory turnover
B)Number of days' sales in inventory
C)Return on investment
D)Debt to assets ratio

Question

Quizplus · Accepted Answer

Cost of goods sold/average inventory is the formula for the inventory turnover ratio, which measures how many times a company sells and replaces its inventory during a period.

Cost of Goods Sold/average Inventory Is the Formula for Which