Consider a firm with an annual net income of $20 million,revenue of $60 million and cost of goods sold of $25 million.If the balance sheet amounts show $2 million of inventory and $500,000 of property,plant & equipment,what is the inventory turnover?

Question

Quizplus · Accepted Answer

Inventory turnover is calculated as Cost of Goods Sold divided by Inventory. Here, it is $25 million / $2 million = 12.50.

Consider a Firm with an Annual Net Income of $20