Finance
Calculate inventory turnover
=B1/AVERAGE(B2:B3)How it works in Excel
- B1 is the cost of goods sold.
- AVERAGE(B2:B3) is the average of opening and closing inventory.
- Higher usually means stock sells faster.
- Divide 365 by this to get days of inventory.
The idea in general
It counts how many times a company sells through its stock in a year.
What I assumed
- Cost of goods sold is in B1, and inventory is in B2 and B3.
Check the result on your own data before relying on it.