What is Inventory Turnover

1.

The inventory turnover is a measure of the number of times inventory is sold or used in a time period. A frequently used method to compute inventory turnover is to divide the average inventory level into the annual cost of sales. For example, an average inventory of $3 million divided into an annual cost of sales of $21 million means that inventory turned over seven times. The synonyms are inventory turns, inventory velocity/turnover measures and turnover. Learn more in: Dynamics of Supply Chains for Perishable and Non-Perishable Items

2.

Refers to the rate at which stocks issued or sold out are replaced within a given period. Learn more in: COVID-19 Pandemic and Its Implications on Storekeeping Practices: Perspectives of Health Workers