Inventory Turnover

aka Turnover

The inventory turnover KPI allows you to know how much of your average inventory your company has sold in a period. The KPI gives you a picture of your company’s sales strength and production efficiency. [1] [2]
A good inventory turnover ratio is between 5 and 10 for most industries, which indicates that you sell and restock your inventory every 1-2 months. This ratio strikes a good balance between having enough inventory on hand and not having to reorder too frequently. [3]


[2] Turnover. Retrieved May 21, 2021, from

[4] 29 Financial KPIs for Your Financial KPI Dashboard | Scoro. Retrieved May 21, 2021, from

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