You can find more about calculating the inventory turnover ratio in this AAII Journal article.
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The inventory turnover ratio should be particularly interesting to pay attention to when the majority of retailers report quarterly results in February.
It is also useful to look at the inventory turnover ratio.
Taking this a step further, you can determine the number of days it takes to completely turn over inventory by dividing the number of days in a period by the inventory turnover ratio.
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