How many times you can "Turn" your money over in a year. This is expressed as a ratio of the total inventory to the annual sales. Example: If the dollar value of the inventory (a number that probably must be reported to both your banker and the government) is $5,000,000 and the annual sales is $25,000,000 the inventory turns is five. If the inventory can be reduced to $1,000,000 the inventory turns become 25. Increasing your inventory turns may require a paradigm shift by your banker who may think inventory is something of value rather than MUDA.