That being said higher return rates are always better than lower return rates. Youll then use the average inventory and cost of goods sold COGS for that time period to calculate inventory turnover. In this case it is easy to calculate the rate of return at 42 percent.
Youll then use the average inventory and cost of goods sold COGS for that time period to calculate inventory turnover.
The screenshot below demonstrates the results returned by the formula the Percentages of Total column is formatted as percentage with 2 decimal places showing. Determine your nominal rate of return and add one to the percentage. It assumes that the total month. An investor purchased a share at a price of 5 and he had purchased 1000 shared in year 2017 after one year he decides to sell them at a price of 10 in the year 2018.