Definitions for "inventory turnover"
Keywords:  turnover, average, divide, sold, ratio
The ratio of a companys annual sales to its inventory; or equivalently, the...
Inventories divided by sales, multiplied by 360 (the lower the ratio, the faster the inventory turnover)
This is a ratio that shows how well your inventory is selling and is an important cash driver for your business. It shows the number of times you sell your inventory in one year. You can calculate your company's Inventory Turnover by dividing the value of your inventory by your sales, and multiplying that number by 365.