I need the Turn Over Ratio Normally TOR= Cost of sales /Avg Inventory, If i d

I need the Turn Over Ratio Normally TOR= Cost of sales /Avg
Inventory,
If i dont have stock (I brought and sold the item once in
last 1 yr) in that case what will be my average inventory...

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I need the Turn Over Ratio Normally TOR= Cost of sales /Avg Inventory, If i dont have stock (I br..

Answer / Abirbhav Kumar Srivastava

When you don't have inventory, it means there is no cost of goods sold during the year. Therefore, the average inventory would not apply because there isn't any inventory to average. The Turn Over Ratio (TOR) cannot be calculated.

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