Answer:
[tex]\frac{Sales}{Average Inventory} = $Inventory Turnover[/tex]
where:
[tex]$Average Inventory=(Beginning Inventory + Ending Inventory)/2[/tex]
The inventory turnover represent how many times the company sales their inventory during the year or period of analysis.
A high inventory turnover during Christmas shopping seasons mean sales are higher. The inventory in the store is sold more times during this time.
