Average inventory is calculated by using the sum from the first quarterly reporting month to the last quarterly reporting month and then dividing that quantity by two (Gibson, CH, 2013, p. 239). With this tool we can see if a company is renewing its inventory adequately for the industry. It is beneficial to compare with other similar industries. A high score shows that a company builds inventory and disposes of it quickly (Gibson, CH, 2013, p. 239). A low score means that inventory is not being replenished 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 major difference in inventory turnover. Lowes leads with 116% and Home Depot with 13%. As a result, we see that Home Depot is transforming its inventory in a significant way that can be increased.