Inventory Turn measures the number of times inventory is sold in a defined time period. We calculate Inventory Turn by taking the net sale at cost value and multiplying by (365 divided by the number of days in the report) and then dividing by the average inventory at cost value.
Average inventory at cost equals extended cost divided by the total onhand quantity. The resulting inventory turn ratio displays by month for the past 7 months. The Inventory Turn ratio matches the QuickLinks > Supplier Information Report > Turns value when the SIR report is filtered to a specific month. The SIR report defaults to the last 30 days.
