Final answer:The formula for calculating a company's inventory turnover ratio is Cost of Goods Sold divided by Average Inventory.Explanation:The inventory turnover ratio is a financial metric that measures how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold (COGS) by the average inventory during a specific period, indicating how many times inventory is sold and replaced within that timeframe. The formula for calculating a company's inventory turnover ratio is:Inventory Turnover Ratio = Cost of Goods Sold / Average InventoryThe cost of goods sold is the total cost incurred to produce or purchase the goods sold during a specific period, and the average inventory is the average value of inventory held by the company during that period.For example, if a company had $500,000 in cost of goods sold and $100,000 average inventory, the inventory turnover ratio would be 5 ($500,000 / $100,000)....

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