Need some help to calculate Inventory Turnover Ratio.

A

Abbas2019

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Jun 27, 2019
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Hi,
I am an Accounting and Finance Student. I need someone to help me to sort out the Inventory Turnover Ratio Formula.
Thanks
 
Hello Abbas. Please see the guidelines that you were asked to read. After that, post the formula which you're asking about, and explain specifically what needs "sorting out". Thanks!

?
 
Actually, I need some explanation for the below formula.
Inventory turnover ratio = Value of the material consumed over the period / Value of the average stock.
I found this formula from the below link:

Inventory Turnover Ratio | Definition, Formula, and Examples

Inventory Turnover refers to the movement of material into and out of an organization. Click here to know more information about inventory turnover.
www.playaccounting.com www.playaccounting.com
Need to know which materials? (direct + indirect)?
 
The words you are asking about, "direct" and "indirect", do not appear in any of your definitions! What do you really want to know?
 
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