The inventory turnover ratio is measured as:

A) Total sales minus inventory.
B) Inventory times total sales.
C) Cost of goods sold divided by inventory.
D) Inventory times cost of goods sold.
E) Inventory plus cost of goods sold.

Inventory Turnover

A ratio that measures how many times a company's inventory is sold and replaced over a certain period.

Cost of Goods Sold

Direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Total Sales

The aggregate revenue a company generates from the sale of goods or services before any expenses are subtracted.