The formula, cost of sales/average inventory, measures the:

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The formula cost of sales/average inventory gives the number of times inventory is turned over during a period. This is known as inventory turnover ratio, which helps to measure the efficiency of inventory management. It gives an idea of how many times a company sells and replaces its inventory during a given time period. The higher the inventory turnover ratio, the more efficient the company is at managing its inventory.

The Formula, Cost of Sales/average Inventory, Measures The