3/28/2024 0 Comments Inventory turn rate![]() Now you have your inventory turn rate, this can be used to compare your restaurant to other similar concepts in your market.īut you can also use your inventory turnover rate to calculate the average days on hand for your inventory. Related post: How To Calculate Your Restaurant Inventory Par Levels How Do You Calculate Average Days in Inventory? No matter which ratio you decide to use, it’s important that when comparing your rate to others, you specify whether it’s COS or Total Sales. Total annual sales include the company’s markup and this can often make it look like your restaurant is turning inventory faster than you really are. Most restaurateurs prefer the COGS turnover formula because it does not include markups. Why is the COGS (COS) Inventory Turnover Formula preferred? ![]() The alternative inventory turnover formula for calculating turnover uses the total annual sales of your restaurant and divides it by your average inventory.
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