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Inventory Turnover Ratio – Meaning, Formula, Calculation & Interpretations [Video]

Inventory Turnover Ratio – Meaning, Formula, Calculation & Interpretations

This tutorial provides a comprehensive overview of the Inventory Turnover ratio, including its meaning, formula, calculations, and interpretation. Using a practical colgate case study example, we will learn how to calculate this inventory turnover ratio in excel.

You can download the Colgate Inventory Turnover Ratio template from this link – https://www.wallstreetmojo.com/ratio-analysis-template/

What is Inventory Turnover Ratio?
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The Inventory Turnover Ratio examines how quickly a company replaces its current inventory and converts it into sales. A higher ratio means the company’s product is in high demand and sells quickly, resulting in fewer inventory management costs and more profits.

Formula
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Inventory Turnover Ratio Formula = Cost of Goods Sold / Average Inventory

Interpretation of Inventory Turnover Ratio
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– High Inventory Turnover Ratio – This indicates that the company has done a good job of managing its inventory, with lower holding costs and fewer risks of obsolescence.
– Low Inventory Turnover Ratio – This implies that the company’s products aren’t frequently sold in the market, and its inventory becomes slow-moving, resulting in higher inventory costs and lower earnings.
For more details, you can refer to our article – https://www.wallstreetmojo.com/inventory-turnover-ratio-formula/

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Categories
Resources for Accountants

Crypto accounting for startups | Finance Basics with Kruze Consulting’s Scott Orn | E1339 [Video]

Subscribe to This Week in Startups on Apple: https://rb.gy/v19fcp00:00 The credible next wave of crypto startups03:17 What regulation actually applies to crypto04:32 Tax treatments on tokens and the right move for startups08:24 Recent improvements in crypto accounting infrastructure12:07 What happens if your business is paid in crypto, making the right moves with the IRS17:39 Historical comparison of airline miles & points to tokens21:25 Emerging guidance for startups regarding crypto25:22 Closing thoughtsCheck out Kruze Consulting: https://www.kruzeconsulting.com/twistFOLLOW Scott: https://twitter.com/scottornFOLLOW Jason: https://linktr.ee/calacanishttps://thisweekinstartups.com/basicsListen here:Apple: https://podcasts.apple.com/us/podcast/this-week-in-startups-audio/id315114957Spotify: https://open.spotify.com/show/6ULQ0ewYf5zmsDgBchlkr9Overcast: https://overcast.fm/itunes315114957/this-week-in-startups-audioMore from us:Twitter: https://twitter.com/twistartupsInstagram: https://www.instagram.com/twistartupsOfficial site: https://thisweekinstartups.comSubscribe to our YouTube to watch all full episodes:https://www.youtube.com/channel/UCkkhmBWfS7pILYIk0izkc3A?sub_confirmation=1Subscribe to TWiST Clips for all the best moments:https://www.youtube.com/channel/UCS7tJlcUA6PzVHEMo-X7ddg?sub_confirmation=1#startups #entrepreneurship #investing #angelinvesting #tech #news #business

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Resources for Accountants

These Variance Analyses Made My Career in Accounting [Video]

Become a Controller; enroll in the Controller Academy 🚀 https://controller-academy.com/courses/controller-academy Variance Analysis is one of the most important steps of closing the financial period. In this video, I share with you how to perform the 2 main types of variance analyses. Download file shown in the video: https://thefincontroller.com/p/twomethods-variance-analysis ----------------------------------- Hang Out with me on social media: 📸 https://www.instagram.com/the_financial_controller/ 📱https://www.tiktok.com/@thefinancialcontroller https://www.linkedin.com/in/bill-hanna-cpa-7653a851/ DISCLAIMER: Links included in this description might be affiliate links. If you happen to purchase a product or service with the links that I provide I may receive a small commission. There is no additional charge to you! Thank you for supporting my channel so I can continue to provide you with free content each week! All views expressed on my channel are mine alone. Not intended as financial or professional advice