Question

the inventory turnover ratio is equal to which of the following?
current assets divided by current liabilities
gross sales divided by costs of goods sold (cogs)
costs of goods sold (cogs) divided by average inventory

Explanation:

1. Analyze the first option: "current assets divided by current liabilities" is the formula for the current ratio, not inventory turnover.
2. Analyze the second option: "gross sales divided by costs of goods sold (COGS)" is not a standard financial ratio related to inventory turnover.
3. Analyze the third option: The inventory turnover ratio is a financial metric that measures how many times a company's inventory is sold and replaced over a period. Its formula is $\frac{\text{Cost of Goods Sold (COGS)}}{\text{Average Inventory}}$, so this option matches the definition of inventory turnover ratio.

Answer:

costs of goods sold (COGS) divided by average inventory