Inventory Turnover Ratio

Description
This video offers an analysis of the inventory turnover ratio equation, and shows how you can use it for your business.

First of all, he demonstrates how you can calculate your inventory turnover ratio using cost of goods sold and average inventory figures. The video then shows how you can understand and interpret this equation. He then uses example figures to demonstrate how the inventory turnover ratio can be calculated and explains what this figure means for your business. Ultimately, this video will give you the tools needed to calculate how many times in a year you need to rotate or turnover your inventory.

He then demonstrates what different inventory turnover ratios can mean, and how these ratios can affect your business. He shows how these different ratios can have a huge impact on your business' profit making capacity.

Ultimately, this video will show you how to calculate the inventory turnover ratio and help you understand what these figures mean and whether they are a good or bad thing for your business.

Length: 6 minutes 39 seconds