Inventory turnover days = time period days x( 1/2)x (opening inventory quantity+closing inventory quantity)/time period sales; Inventory turnover rate = 360/ inventory turnover days.
Inventory turnover rate is an index reflecting the inventory turnover rate and the inventory control level of an enterprise in a certain period of time. It is usually counted and monitored on a monthly or annual basis. Inventory turnover rate is an index of inventory management and control, and also a financial index, which mainly reflects the health of inventory and the turnover efficiency of enterprise assets and even cash.
You can make a comparison: suppose the article number of a commodity is 550202, the average daily sales volume is 6, the current inventory is 48, and the turnover days are 48/6=8. However, if the inventory increases to 200 and the turnover days are 200/6=33 days, you can't say that 550202 is a slow-moving commodity, only that the inventory is too large.
On the other hand, if the inventory is 24, the turnover days will become 4 days, and you can't say that it is a liquid commodity. In fact, in the above example, the sales of goods have not changed, but there are three turnover days. Similarly, if the sales volume changes, the turnover days will also change accordingly.
Therefore, when analyzing sales, we can't simply draw conclusions from one or two data, and all relevant factors should be analyzed.