The following is the Receivables Turnover Ratio calculation formula: For example, a company has net credit sales of $1,000,000, beginning net receivables of $200,000 and ending net receivables of $160,000, then the Receivables Turnover Ratio is 1,000,000/[(200,000 + 160,000)/2] = 1,000,000/180,000 = 5.56. Inventory turnover ratio is a ratio which shows how many times a company has replaced and sold inventory during a period say one year, five years or ten years. The inventory turnover ratio is a simple ratio that helps to show how effectively inventory can be managed by comparison between average inventory Formula. The inventory turnover ratio is calculated by dividing the cost of goods sold for a period by the average inventory for that period.