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Inventory Turnover

How many times inventory is sold and replaced over a period.

Area
Inventory
In this area
44 terms of 257

Inventory turnover measures how efficiently you convert stock into sales. A higher ratio generally means less cash tied up in inventory and fresher stock.

It is most useful compared against your own history and industry peers — very high turnover can also signal stockout risk, while very low turnover points to dead stock.

How it is calculated

Turnover = COGS ÷ Average inventory value

Often paired with Days Inventory Outstanding for a time-based view.

See it in AWRA OpsHub

Inventory Insights

Related terms

Days Inventory Outstanding

DIO

The average number of days stock is held before it is sold.

Dead Stock

Inventory that is unlikely to ever sell.

Cost of Goods Sold

COGS

The direct cost of the products a business sold in a period.

More in Inventory

ABC Analysis Asset Tracking Available to Promise (ATP) Backorder Barcode Carrying Cost Consignment Inventory Cycle Count

Inventory Turnover is not just a definition here

Inventory runs on this vocabulary every day in AWRA OpsHub — 44 of our 257 glossary terms describe things the platform actually does.

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