Calculating Inventory Turn Rate is an important business metric that helps measure the overall effectiveness of a company’s inventory management system. It reveals how quickly inventory moves through a business, from purchase to sale. The Inventory Turn Rate measures the number of times, on average, inventory is sold or used up in a given period. A higher inventory turn rate means that stock is moving through the business quickly, leading to higher profits. By measuring the rate at which items are sold or used up, companies can make decisions about inventory levels and purchasing practices.