Accounting for IGCSE & O level - Advanced Principles (Section 2 - No. 29)

What is the formula used to calculate the 'average days to settle inventory'?

Inventory Turnover Ratio / 365

365 / Inventory Turnover Ratio

Cost of Goods Sold / Average Inventory

Average Inventory / Cost of Goods Sold

Average days to settle is a calculation based on turnover.