Inventory turnover rate

What is an inventory turnover rate?


Inventory turnover rate is the number of times your company sells and replaces its inventory within a period of time. You can use your inventory turnover rate to determine if your company has too much inventory compared to how much of your stock is selling.


Inventory turnover rate = cost of goods sold / average inventory

Want to learn how you can improve your Inventory Turnover Ratio?

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