Final answer:
To calculate inventory turnover, divide the cost of goods sold (COGS) by average inventory.
Step-by-step explanation:
To calculate inventory turnover, you need to know the cost of goods sold (COGS) and the average inventory. The formula for inventory turnover is COGS divided by average inventory. For example, if the COGS is $500,000 and the average inventory is $100,000, the inventory turnover would be 5. This means that the inventory is turning over 5 times in a given period. It is important to note that inventory turnover may vary by industry, so it's important to compare it to industry benchmarks for a more accurate assessment.