Average inventory is calculated by using the sum of the first month of quarterly reporting through the last month of quarterly reporting and then dividing this quantity by two (Gibson, CH, 2013, p. 239). With this tool we can see if a company is delivering inventory appropriately to the industry. Comparison with other similar sectors is advantageous. A high score indicates that a company is accumulating inventory and getting rid of it quickly (Gibson, CH, 2013, page 239). A low score means inventory is not delivered as quickly as possible. This indicator allows a company to stock up to meet inventory needs. In our comparison with Home Depot and Lowe's we see a big difference in inventory turnover. Lowes leads with 116% and Home Depot at 13%. As a result we see that Home Depot is turning inventory in a way that can scale up
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