Hello,

I am working through a financial statement analysis project for accounting and my professor has asked us to compute the inventory turnover ratio from three years of financial statements from target. I have computed inventory turnover ratio for two years of financial statements but I am unsure of how to compute for three years of financial statements with the inventory turnover formula. Would you take a look at the screen shots of the inventory from the three years of financial statements and explain how I would go about computing the inventory ratio from three years of financial statements? Thank you for your help.

Cost of goods sold for 2017 is 51,125

Cost of goods sold for 2018 is 53,299

Cost of goods sold for 2019 is 54,864

Consolidated Statements of Financial Position February 3, January 28, 2018 2017 (millions, except footnotes) Assets Cash and cash equivalents Inventory Other current assets $ 2,643 $ 2,512 8,657 8,309 1,264 1,169 Consolidated Statements of Financial Position February 2, 2019 February 3, 2018 As Adjusted (millions, except footnotes) Assets Cash and cash equivalents Inventory Other current assets 1,556 $ 9,497 1,466 2,643 8,597 1,300 Consolidated Statements of Financial Position February 1, February 2, 2020 2019 (millions, except footnotes) Assets Cash and cash equivalents Inventory Other current assets 2,577 $ 8,992 1,333 1,556 9,497 1,466