inventory turnover
DefinitionThe ratio of a company's annual sales to its inventory; or equivalently, the fraction of a year that an average item remains in inventory. Low turnover is a sign of inefficiency, since inventory usually has a rate of return of zero. For instance, if a company was able to generate $10 million in sales but averaged $5 million in inventory, the inventory turnover would be 10 million / 5 million = 2. This number indicates that there would be 2 inventory turns per year, meaning that it would take 6 months to sell all the inventory.
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inventory turnover is ...
... part of the Accounting and Business subjects.
... part of the Accounting and Business subjects.
inventory turnover appears in the definitions of these other terms on BusinessDictionary.com
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