Home Depot Inventory Turnover. Inventory turnover increased to 5.4 up from 4.8 in 2000. The formula for days inventory outstanding is closely related to the inventory turnover ratio.
Inventory turnover definition the inventory turnover ratio measures the speed at which inventory moves through a company. An activity ratio calculated as cost of goods sold divided by inventory. Calculating inventory turnover helps businesses make better pricing, manufacturing, marketing.
Inventory turnover increased to 5.4 up from 4.8 in 2000.
Cost of goods sold / total inventory. Home depot over the past years has centralized its inventory planning and implemented new forecasting technology, currently 91% of its us store products are ordered through a central replenishment and it hopes. Home depot’s inventory turnover increased significantly following the application of a new inventory management system. Although holding more inventory per unit square feet, the retailer needs less days to turn over its inventory.
