Inventory turnover using quantities?

[BartV]

Hello,

The formula for inventory management is:

[MATH]\mbox{Inventory Turnover} = \frac{\mbox{COGS}}{\mbox{Average Value of Inventory}}[/MATH]
If I have access to the quantities of stock and sold goods, is it correct to use:

[MATH]\mbox{Inventory Turnover} = \frac{\mbox{Quantities Sold}}{\mbox{Average Quantity of Inventory}}[/MATH]
If not, why not? Or why would it be better to use values?

 

[HallsofIvy]

What does "COGS" mean?

 

[BartV]

Cost of Goods Sold.
I think I found the answer in the meanwhile, on Wikipedia's "Inventory turnover" page:

Some computer programs measure the stock turns of an item using the actual number sold.

The important issue is that any organization should be consistent in the formula that it uses.

So the answer is: yes, it's correct .