The Income/Outcome^® Contextuary

a visual glossary of corporate finance

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We use "business visualization" to graphically simplify complex business concepts (and increase business acumen). To get more information on business visualization, please see "The Company Board" (our business results visualizer) and Income/Outcome (our customizable business simulation).

The following are our generic explanations of common corporate financial terminology. Actual meanings can vary wildly from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"

To get more information about the authors, please see our Directory of Contributing Editors.

Inventory Turnover

Ratio: Annual Cost of Sales (COS) divided by the average value of inventory on hand.

This ratio is the number of times a business sells out its inventory during the year. Also called Inventory Turns.

Full it flag term list.

The Income/Outcome® Contextuary

a visual glossary of corporate finance

Inventory Turnover

The Income/Outcome^® Contextuary