Final answer:
The inventory turnover ratio is used to measure the efficiency of a company in turning over its goods after deducting the cost of sales.
Step-by-step explanation:
The ratio used to measure the comparative efficiency of a company in turning over its goods after deducting cost of sales is known as the inventory turnover ratio. This ratio shows how efficiently a company can control its stock by turning it over in a given period, which is typically a year. The formula to calculate this ratio is the cost of goods sold (COGS) divided by the average inventory during the period. A higher ratio indicates more efficiency as it shows that the company has sold and replaced its inventory more frequently.