Inventory Turnover
Also called: stock turnover, inventory turns, days inventory
Inventory turnover is how many times stock is sold and replaced in a year. High turnover means less capital tied up and less obsolescence risk, which is why grocers turn inventory dozens of times and jewellers once or twice. A falling trend usually precedes discounting and writedowns, making it one of the more predictive operational ratios.
Formula
Inventory turnover = COGS ÷ Average inventory
Where this is taught
Definitions are the trailer. These free levels turn Inventory Turnover into something you play — one bite-size lesson, with worked examples, a quiz and XP.