Blizzards Inventory Turnover Ratios

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The activity ratio or better known as the inventory turnover ratio due to its ability to determine on average how long inventory sits can be used as one of the best indicators showing how efficiently a company is turning its inventory into sales. By figuring out average inventory (last year plus current year divided by two) and dividing it by Cost of Goods Sold (includes labor costs as well as cost of materials) you will be able to find your activity ratio. Blizzards inventory consists of roughly 125,500 units a year costing roughly $1.6 million (12.63 AR) to produce, while close competitors like Sony, an entertainment company who manufactures technology as well as, produces roughly 624,289 units at about $5.2 million (7.66 AR) to produce annually,

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