Inventory Turnover Calculator
Measure how many times your company has sold and replaced inventory during a given period.
Inventory Turnover Ratio
What Is Inventory Turnover?
The inventory turnover ratio is a measure of how many times inventory is sold or used in a time period such as a year. It is calculated to see how efficiently a company is managing its inventory. A higher ratio is generally better, as it indicates that the company is selling its inventory quickly.
Frequently Asked Questions
What is a good inventory turnover ratio?
A good inventory turnover ratio varies by industry. A low turnover ratio implies weak sales and possibly excess inventory, while a high ratio implies either strong sales or insufficient inventory.
How can I improve my inventory turnover?
You can improve your inventory turnover by increasing sales, reducing your inventory levels, or a combination of both. This can be achieved through better marketing, demand forecasting, and inventory management.