Inventory Turnover Ratio
The inventory turnover ratio is an efficiency ratio that demonstrates how efficiently inventory is organized by measuring up to cost of goods that are sold with typical inventory for a period. This calculates that how many times typical inventory is turned or sold throughout a period.So that is called Inventory Turnover Ratio.
Business ratios can be explained as financial tools that can help you in finding the weak and erroneous areas of your business. With the help of these ratios you can find out the numerical and financial relationship among different entities of your business. Some
Inventory Turnover Ratio or Stock Turnover Ratio (ITR) : Every firm has to maintain a certain level of inventory or stock of finished goods so as to be able to meet the requirements of the business. But the level of inventory should neither be