The days' sales in inventory ratio is calculated by dividing cost of goods sold by the average merchandise inventory.

Name: The days' sales in inventory ratio is calculated by dividing cost of goods sold by the average merchandise inventory.
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The days' sales in inventory ratio is calculated by dividing the ending inventory by the cost of goods sold and then multiplying by 365 (or the number of days in the period being analyzed).

The Days' Sales in Inventory Ratio Is Calculated by Dividing