What does the actual turns figure represent in the Inventory Turnover Rate report?
On the report it has Item code, description 1, descrip 2, Qty sold,
ending inv, Actual turns, and annual turns.
What do "actual turns" and "annual turns" stand for?
(5003)
The Actual turns figure represents a ratio of the amount that you sold for the period in question divided by the amount of inventory you have now.
Amount Sold/current inventory = Actual turns
The Annual turns is this annual projection of this number, based on current figures. If you examine the example you gave me you'll see that it fits the data.
You can use this ratio to help determine the amount of inventory you keep in stock based on your demand. Rather than dealing with the larger numerical quantities, etc. you can look at the ratio directly.
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