Formula
Inventory Turnover =
Cost of goods sold / Average
InventoryInvestment Technology Group, Inc. InventoryTurnover Calculation
* All numbers are in millions except for per share dataInvestment Technology Group, Inc. Annual Data
| Dec03 | Dec04 | Dec05 | Dec06 | Dec07 | Dec08 | Dec09 | Dec10 | Dec11 | Dec12 |
|---|
| InventoryTurnover |
|---|
Investment Technology Group, Inc. Quarterly Data
| Dec10 | Mar11 | Jun11 | Sep11 | Dec11 | Mar12 | Jun12 | Sep12 | Dec12 | Mar13 |
|---|
| InventoryTurnover |
|---|
Explanation
Inventory Turnover measures how fast the company turns over its inventory within a year. A higher inventory turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.
Beaware
Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate inventory turnover. An average inventory is a better indication.