This value measures how quickly the Inventory is sold. It is defined as Cost of Goods Sold divided by Average Inventory for the same period. Average Inventory is the average of the Inventory at the beginning and the end of the quarter.

Formula: CostG / Inventory

IMPORTANT: Quarterly values from Income & Cashflow statements are annualized to make the resulting factor more readily comparable with 12 month factors. The annualization is done by multiplying the quarterly figures by approximately 4 (depends on the actual number of days in the period).


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