https://file.aiquickdraw.com/mathbot/file/1728656879194qe522lqq.jpg

The image provides a formula for the inventory turnover ratio and values for the years 2021, 2022, and 2023. The formula for inventory turnover is:

\[
\text{Inventory Turnover} = \frac{\text{Cost of Goods Sold (COGS)}}{\text{Inventory}}
\]

The values given are as follows:

- **2021**: 
  - Cost of Goods Sold (COGS) = 23,926,199
  - Inventory = 4,615,479
- **2022**:
  - COGS = 25,922,960
  - Inventory = 5,610,233
- **2023**:
  - COGS = 28,462,530
  - Inventory = 5,133,737

Let's compute the inventory turnover for each year:

1. **2021**:
\[
\text{Inventory Turnover} = \frac{23,926,199}{4,615,479} \approx 5.18
\]

2. **2022**:
\[
\text{Inventory Turnover} = \frac{25,922,960}{5,610,233} \approx 4.62
\]

3. **2023**:
\[
\text{Inventory Turnover} = \frac{28,462,530}{5,133,737} \approx 5.55
\]

Would you like further clarification or additional details? Here are some related questions:

1. What is the significance of the inventory turnover ratio?
2. How does a higher turnover ratio affect business operations?
3. Can the inventory turnover ratio be compared across industries?
4. What factors could cause the ratio to decrease over time?
5. How can businesses improve their inventory turnover?

**Tip**: A higher inventory turnover often suggests strong sales but could also mean insufficient inventory to meet demand if it is too high.

The image shows a query related to the calculation of inventory turnover ratios for the years 2021, 2022, and 2023 using the formula: Inventory Turnover = Cost of Goods Sold / Inventory.

This page explains how to calculate the inventory turnover ratio for the years 2021, 2022, and 2023 using the formula: Inventory Turnover = Cost of Goods Sold / Inventory. The calculated ratios for each year are 5.18 (2021), 4.62 (2022), and 5.55 (2023).

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation