Series 79: Inventory Turnover Ratio

Taken from our FINRA Investment Banking Exam

Definition of the term Inventory Turnover Ratio...

a measure of how many times a company’s inventory is sold and replaced during a given accounting period, such as a fiscal year. It is the period’s COGS over the average dollar value of the company’s inventory for the period. Compare to days inventory outstanding (DIO).

Since you're reading about Series 79: Inventory Turnover Ratio, you might also be interested in:

Solomon Exam Prep Study Materials for the Series 79
Please Enable Javascript
to view this content!