The number of times that a companies inventory cycles or turns over per measurement period (month, quarter, year).
Do we have a benchmarking turnover ratio for pharma industry.
Do we have a benchmarking turnover ratio for fiber cement industry?
I am looking for an indicative figure suitable for a lumber or sawmill operation.
I need to measure our stock turn from inventory, but on items that we lease to a customer as part of a service. also not every solution sold will have stock items in it.
A GOOD FORMULA FOR INVENTORY TURNOVER IS:
(SALES – COST OF GOODS SOLD) + FINANCIAL INCOME-——————————————————————— x PERIOD OT TIME INVENTORY OF PERIOOD + ACCTS RECEIV.
Total sales (items) in a period/ Average Inventory in this period