Glossary
Glossary
Glossary
Inventory Turnover Rate
Inventory Turnover Rate
Definition
Measures how many times a company's inventory is sold and replaced over a specific period. It is calculated by dividing the cost of goods sold by the average inventory. A higher rate indicates efficient inventory management and strong sales.
Measures how many times a company's inventory is sold and replaced over a specific period. It is calculated by dividing the cost of goods sold by the average inventory. A higher rate indicates efficient inventory management and strong sales.
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