Manufacturing Company Inventory List
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Indeed, the inventory turnover ratio is often inverted and multiplied by 360 to estimate the number of days sales sitting in inventory: Days Sales in Inventory 360 Average Inventory Average Inventory = = Inventory Turnover (Cost of Goods Sold ) /360 Average Daily Sales at Cost Inventory Turnover Comparisons Inventory Turnover Comparisons 80 80 73 73 Inventory Turns Per Year Inventory Turns Per Year 70 70 60 60 50 50 40 40 30 30 20 20 10 10 5 3 3 2 5 2 7 5 3 7 3 5 8 5 1 8 1 H H om om e e De D po ep t ot M M ed ed tro tro ni ni c P c Pa ark rk er er H Ha ann nn ifin Pr ifin P r oc oc te te r r G G am am b bl le e Ti f Ti fa ffa ny ny Co Co W W al al M -M ar ar t S t S to to res re s D D ell el l B Bo ord rd ers er s 0 A 3 Ab ber 3m m er cro cr m om b bi i e e Fit F i ch tc h 0 5 Figure 5.6 Figure 5.6 The inventory turnover ratio is often misestimated due to two computational flaws that are all too common even among publicly available online databases purporting to calculate reliable sets of financial performance ratios..
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