Definition
Inventory turnover
Inventory turnover is how many times you sell through your average stock in a period: cost of goods sold divided by average inventory value.
Turnover of 6 means you sold and replaced your whole inventory six times in the year, roughly every two months. Higher is usually better, up to the point where you start running out. Compare it against your own past, not against a different kind of business.
In Inventory Now
The summary report shows inventory value and cost of goods sold for any date range, which is all the formula needs.
ReportsRelated terms
