Coming from a scientific background, the metric “inventory turnover” has always bothered me.
There are too many scenarios that can make the formula blow up.
A common formula for it is:
Sales (or Cost of Sales) / Average Inventory
And I’ve seen some suggest that you calculate the Avg Inv as
Avg Inv = (Ending Inv Val - Beginning Inv Val ) / 2
If your ending Inv value is close to the beginning Inv value, then the denominator in the first equation tends towards zero. So the Inv Turns blows up (gets very large).
And if your Ending val is < the beginning Inv Val, you get a negative!
You’d really need to add all the daily Inv Values together and divide by the number of days.