what is inventory turn

what is inventory turn is an important metric for businesses to understand in order to assess how efficiently they are managing their stock. Inventory turnover refers to how many times a company’s inventory is sold and replaced over a specific period, usually a year. A high inventory turnover rate indicates that a business is efficiently selling and replenishing stock, while a low turnover rate may suggest slow-moving inventory that needs to be addressed. Calculating inventory turn helps businesses optimize their stock levels, reduce excess inventory, and ensure that they are meeting customer demand without overstocking.