In industries such as retail, success depends on management's ability to make or buy the right amount of inventory and to move that inventory through the distribution system as quickly as possible.

The number of times a business sells and replaces its stock over a given time period is its inventory turnover ratio. The inventory turnover ratio, also sometimes called stock turns or inventory turns ...

A common way that analysts and investors measure the performance of a company selling goods is by using financial ratios. One ratio that is useful for evaluating a company's effectiveness in utilizing ...

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 ...

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 most people research a stock, they focus on earnings and revenue growth. Some pay attention to cash flow. Rarely do investors dig a little deeper on the balance sheet and examine things like ...

Discover what overall turnover means for businesses, how it's calculated, and why it's crucial for measuring company efficiency. Commonly used in Europe and Asia.

A high inventory turnover ratio typically means your business is managing stock efficiently. Many, or all, of the products featured on this page are from our advertising partners who compensate us ...

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 ...