Sep 10, 2025 · Inventory turnover is calculated by dividing a company's cost of sales, or cost of goods sold (COGS), by the average value of its inventory over two recent consecutive periods.

Jun 27, 2025 · Learn how to calculate inventory turnover ratio & why it’s important. Plus, find examples, industry benchmarks & a free template.

Jul 26, 2024 · Inventory turnover is the rate that inventory stock is sold, or used, and replaced. The inventory turnover ratio is calculated by dividing the cost of goods by average inventory …

What is Inventory Turnover? Inventory turnover, or the inventory turnover ratio, is the number of times a business sells and replaces its stock of goods during a given period. It considers the …

Jul 25, 2025 · Inventory turnover is the average number of times in a year that a business replaces its inventory. Low turnover equates to a large investment in inventory.

Dec 16, 2025 · Learn what inventory turnover means, how to calculate it, and why it matters for cash flow, efficiency, and warehouse performance.

Jun 20, 2025 · Inventory turnover is usually calculated as Cost of Goods Sold (COGS) divided by Average Inventory. In other words, it’s the number of times your business “turns over” its …

Aug 8, 2025 · Inventory turnover measures how many times a company sells and replaces its inventory during a specific period, typically calculated annually. This key metric reveals how …

Nov 13, 2024 · The inventory turnover ratio shows how often a company has sold and replaced inventory during a given period. Calculating this ratio can help businesses make better …

Aug 8, 2025 · Inventory turnover shows you how well your inventory is working for your business—or against it. It connects your purchasing, pricing, and operations to the numbers …