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Inventory Turnover

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Published on

Jul 18, 2025

Warehousing

Inventory Turnover

How often inventory is sold or used within a period.

Inventory turnover is a ratio showing how frequently stock is sold and replaced, typically over a year. It’s calculated by dividing the cost of goods sold by average inventory. A high turnover indicates efficient inventory use; a low one suggests overstocking or slow sales. For example, fast fashion brands aim for high turnover to match short style cycles.

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