Check the expiration dates on packages like pancakes and cake mixes that have yeast which over time develop spores. Apparently, the mold that forms in old mixes can be toxic! Throw away ALL OUTDATED pancake mix, brownie mixes, Bisquick, cake & cookie mixes, etc., you have in your home.
Inventory Turnover Ratio. Inventory turnover is an efficiency ratio which calculates the number of times per period a business sells and replaces its entire batch of inventories. It is the ratio of cost of goods sold by a business during an accounting period to the average inventories of the business during the period.
Average inventory does not have to be computed on a yearly basis; it may be on a monthly or quarterly, depending on the amount of analysis required to assess the inventory account. Turnover Days in financial modeling. Below is an example of calculating the inventory turnover days in a financial mode. As you can see in the screenshot, the 2015 inventory turnover is 73 days, which is equal to accounts receivable divided by cost of goods sold times 365. Source: CFI financial modeling courses. Importance of Inventory Turnover for a Business