Inventory Turnover Formula |
| \( IT \;=\; \dfrac{ COGS }{ AVI }\) |
| Symbol |
| \( IT \) = inventory turnover |
| \( AVI \) = average value of inventory |
| \( COGS \) = cost of goods sold |
Inventory turnover, abbreviated as IT, is the number of times a business sells or uses inventory over the course of a defines time period.
