Inventory Turnover Ratio or (ITR) is one of the efficiency ratios used to determine the efficiency of a company. As a general rule the higher the number the better, an ITR of 3 means the company has been able to turn over their whole inventory 3 times a year. However this number varies from industry to industry.
The formula for determining the Inventory Turnover Ratio is defined as:
\(ITR\): Inventory turnover ratio
\(Cost\text{ }of\text{ }Revenue\): The total cost in producing, marketing, distributing the products or services.
\(Inventory\): The total value of the inventory.
Find Inventory Turnover Ratio
Use this calculator to determine the inventory turnover ratio of a public company
The total cost in producing, marketing, distributing the products or services.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
The total value of the inventory.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
