Inventory turnover = _____
A) Current Assets - Inventories/Current Liabilities
B) Net Income/Total Assets
C) Total Debts/Total Inventories
D) Net Income/Owner's Equity
E) Sales/Average Inventory

Question

Quizplus · Accepted Answer

The formula for inventory turnover is sales divided by average inventory. Choice (A) is the formula for the current ratio, (B) is the formula for return on assets, (C) is a ratio that does not relate to inventory, and (D) is the formula for return on equity.

Inventory Turnover = _____