Question: Does this pargrpah make sense : This is complemented by the inventory turnover ratio, a critical metric, which was calculated to be approximately 8.79 and
Does this pargrpah make sense : This is complemented by the inventory turnover ratio, a critical metric, which was calculated to be approximately 8.79 and 8.20 for 2024 and 2023. First we will calculate average inventory , we add beginning inventory +ending inventory and divide it by 2. Using information from the 10K ($56,576+54,892=$111,468/2= $55,734 . Once we determine the average inventory we will input the COGS $490,142/$55,734 This indicates how efficiently Walmart sells and replaces its stock. Additionally, the days sales in inventory (DSI) metric was calculated to be approximately 41.50 days, reflecting the average time it takes to sell the entire inventory. The same formula will be used in order to obtain the result for 2023
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