calculate_inventory_turnover
Calculate inventory turnover: cost of goods sold divided by average inventory — how many times inventory is sold and replaced in a period. Formula: Inventory Turnover = COGS / Average Inventory. WHEN TO USE: Use to assess inventory management and demand strength; rising turnover usually means better stock discipline or strong demand. WHEN NOT TO USE: Do NOT use COGS-based turnover for service businesses with negligible inventory, and always pair with days inventory outstanding for intuition. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { inventory_turnover: number (e.g. 6.0 = 6.0x per year), inputs }. PARAMETERS: cogs (required): Cost of goods sold for the period, e.g. 600000. Must be >= 0. begin_inventory (required): Inventory at period start, e.g. 90000. Must be >= 0. end_inventory (required): Inventory at period end, e.g. 110000. Must be >= 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| cogs | Yes | Cost of goods sold for the period, e.g. 600000. Must be >= 0. | |
| end_inventory | Yes | Inventory at period end, e.g. 110000. Must be >= 0. | |
| begin_inventory | Yes | Inventory at period start, e.g. 90000. Must be >= 0. |