All Glossary Terms
Inventory Turnover
Maintenance definition:
Inventory Turnover is a ratio indicating how many times a company's inventory is sold and replaced over a period. A higher turnover rate suggests efficient inventory management, indicating that the company is effectively using its inventory to generate sales. Conversely, a low turnover rate may signal overstocking or inefficiencies. Monitoring inventory turnover helps businesses optimize their inventory levels and improve cash flow.