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Inventory

Inventory Turnover

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

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.

Formula

Turnover = COGS ÷ Average inventory value

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

See it in AWRA OpsHub

Inventory Insights