A mining company reported annual sales revenue of $75 billion, annual cost of goods sold of $50 billion, and inventory of $15 billion. What are the firm’s annual inventory turns?
Expert Answer
Inventory turnover ratio/turns = Cost of Goods Sold / Average Inventory for the Period
Cost of Goods Sold = $50 Billion
Inventory = $15 Billion
Inventory turnover ratio = 50/15 = 3.3