Inventory turnover is an indicator of a company’s revenue efficiency. It is the ratio defining how many times the inventory was sold and replaced in a given period of time. The inventory turnover ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and ...

When discussing turnover in relation to inventory, it is a reference to how quickly the company is pulling in product sales. To determine inventory turnover, you need to keep close track of the ...

For companies that sell a product, inventory is a major consideration. The more inventory you have, the more money that’s tied up in a static product. Until you sell the product, that money isn’t ...

An organization holds inventory in the form of raw materials and finished goods. Inventory comprises the raw materials and finished goods held by the organization during a given period. From an ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Investopedia / Michela Buttignol Annual ...

Here's how Costco's inventory turnover ratio compares to other companies, and why a higher inventory turnover rate is a key advantage in retail. The inventory turnover ratio can be defined as the ...