What is the formula for the average inventory turnover period in days?

Question

Quizplus · Accepted Answer

The formula for the average inventory turnover period in days is (Average inventory held/Cost of sales) × 365. This formula calculates the number of days it takes for a business to turn over its inventory, which is an important financial metric for inventory management. Option B calculates the inventory turnover ratio but not the turnover period in days. Option C is the inverse of the turnover ratio, but not a measure of the time it takes to turn over inventory. Hence, option A is the correct formula.

What Is the Formula for the Average Inventory Turnover Period