The average inventory turnover ratio measures the number of times a company's inventory is sold out during the accounting period.

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The average inventory turnover ratio is a measure of how quickly a company is selling its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a given period. The resulting number represents the number of times the company's inventory has been sold and replaced during that period.

The Average Inventory Turnover Ratio Measures the Number of Times