The average frequency of stock renewal over a certain period, usually one year, expressed in days. Its calculation, in the case of purchases, is done by dividing the stock by the purchases made in the period, multiplied by the days analyzed. A high turnover rate can be a concerning factor, as it may indicate excess inventory, obsolescence, or deficiencies in the company’s operations management. Stock turnover is an important metric for inventory management and can help companies optimize their inventory levels to reduce costs and improve profitability.
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