Inventory Turnover Calculator

Defination / Uses

inventory is a term that refers to raw stuff for product, products under the manufacturing process, and finished goods ready for dealing. Thus, it includes all the material process transformation.

For an investor, keeping an eye on inventory situations as a part of the current means is important because it allows you to track overall company liquidity. This means that the stock's sell cash can cover the short- term debt that a company might have.

Operations of a company requires cash. At the actually day one, it has to be financed by lenders and investors. Once the company is running, cash for sustaining operations is came by from the products vended (cash inflow) and from short term arrears from financial institutions or suppliers (cash outflow).