Inventory Turnover


Inventory Turnover is the number of times that your Inventory is sold or used during a reporting period. A high Inventory Turnover should be aimed for, as this will indicate that less of your Cash is tied up with stock or items that are not currently being translated into profits. The rate at which you turnover your Inventory can be increased by either reducing your overall inventory levels, by making less stock orders, or by taking steps to increase your sales so that you have less tied up in an – until sold – unused resource.

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