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Inventory Turnover Ratio Calculator

Last updated: Monday, May 01, 2023
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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:
\(IT\) \(=\) \(\dfrac{Cost\text{ }of\text{ }Revenue}{Inventory}\)
\(ITR\): 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
\(Cost\text{ }of\text{ }Revenue\)
\($\)
The total value of the inventory.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
\(Inventory\)
\($\)
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.

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