Inventory Turnover Ratio

Inventory turnover ratio measure the frequency of turnover with the entire inventory dollar value in sales. The formula is Sales/Avg Inventory = Inventory Turnover.

Inventory – How to Finance

Inventory Financing

In financing a small business, there are a multitude of tools available. One way to finance inventory is by using the 30 day pay program with your vendors. Another tool is seasonal payment program and a third tool is exercising a line of credit tied to receivables or sales history.  

An Explanation of Inventory Turnover

Inventory Turnover

A relationship exists between inventory and sales. This is referred to as ‘Inventory Turnover’ or ‘Turnover Ratio’. It is simply the number of days it takes to turn over the dollar value of the inventory. This relationship is important because as the retailer, you would want this number has high as possible. 

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