2. • Measure of the number of
times inventory is sold and
replaced in a time period.
• Ratio is calculated by
dividing Sales by Inventory.
• The time period is typically a
year but can be shorter.
PPT.KUNZITE.01 Version 00.2021
Inventory Turnover Ratio
9. PPT.KUNZITE.01 Version 00.2021
Average
Inventory=Opening
Stock + Closing
Stock divided by 2
Inventory Turn Over
Ratio= Net Sales Done
from Plant wise divided
by Average Inventory
No. of Days in
Year/Inventory
Turnover ratio
Average Inventory Inventory Turn Over Ratio
Days of
Inventory on
hand
North Karnal 2,544 163 329 246 10 35
North Ldh-Local 3,297 372 245 309 11 34
North Jaipur 810 83 52 67 12 30
North Sriganganagar 327 87 43 65 5 73
North Total 6,978 705 669 687 10 36
Inventory Turnover Ratio 2020-2021
SALES DONE
(From Plant)
Depot Name
Zone
Opening Stock
(April-2020)
Closing Stock
(March-2021)
Good Ratio is between 5 to 10 .
