Inventory turnover ratio - theproffitfactory

The ratio of sales for a period to the average inventory value during that period. It is calculated by dividing the number of days in the period by the inventory turnover. This metric can help companies manage their inventory levels and identify potential issues with inventory management. A high inventory turnover ratio indicates that the company is selling its inventory quickly, while a low inventory turnover ratio may indicate that the company is holding too much inventory or has inventory management issues.