Question

Padco averages $5 million worth of inventory in all of its worldwide locations. they operate 50 weeks a year and each week average $3 million in sales (at cost). their inventory turnover is:

Answer 1

Their inventory turnover is 30 Turns

The inventory turnover is calculated through
(Cost of Goods Sold) / (Inventory)

(3 million x 50) / (5 million)

150 million / 5 million

= 30 Turns