If stock turnover for last year was 5.2 during the spring/summer season, the average stockfor this…

➤ When should I use average inventory rather than closing inventory for turnover calculations?
Use average inventory for turnover calculations whenever you analyze a season or year. Average inventory smooths month‑to‑month volatility and gives a more representative denominator for cost of goods sold. Closing inventory can distort turnover when stock levels fluctuate or when inventory is timed for promotions or replenishment.