How do you calculate days in inventory?
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Studied at the University of Tokyo, Lives in Tokyo, Japan.
Apply an alternate formula. If you have not calculated the inventory turnover ratio, you could simply use the cost of goods sold and the average inventory figures. You would divide the average inventory by the COGS. Then you would multiply that number by the number of days in the accounting period.
2023-05-13 16:08:15
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Amelia Patel
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Apply an alternate formula. If you have not calculated the inventory turnover ratio, you could simply use the cost of goods sold and the average inventory figures. You would divide the average inventory by the COGS. Then you would multiply that number by the number of days in the accounting period.