Inventory Period Formula is a useful financial tool that enables businesses to make informed decisions about their stock levels. By calculating the time it takes for a company to replenish its inventory, they can plan ahead and adjust their production costs accordingly. The formula is simple yet effective – just divide the average inventory in stock by the total cost of goods sold every year. This will give you an approximate figure of how many days it takes from placing an order to receiving the goods. Knowing this information can help companies make better-informed decisions about their inventory levels and production costs. So use the Inventory Period Formula and make sure your business is prepared for anything!