Exciting Data on Inventory Turnover!

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Do you know what inventory turnover is? Let's explore!

Inventory Turnover Uncovered

Inventory turnover is a crucial metric for businesses that reveals how many times a company sells and replaces its inventory within a certain period. It offers insight into how efficiently a company manages its inventory and generates sales.

Inventory turnover is calculated by dividing the cost of goods sold (COGS) by the average inventory. A high inventory turnover signifies that a company is selling its products quickly and efficiently, while a low inventory turnover may indicate overstocking or slow sales.

Businesses can use inventory turnover to assess their operational efficiency, manage inventory levels effectively, and make informed decisions to optimize their production and sales processes.