Ideal Inventory Turnover Ratio is a measure of how efficiently your business is using its inventory. It shows how many times you’ve sold and replaced your stocks in a given period. A high turnover ratio indicates that your sales are going well and that you’re keeping up with demand, while a low ratio means that you may be keeping too much stock on hand or not selling quickly enough. To determine your ideal ratio, analyze your available data and identify patterns to ensure you’re meeting customer needs while avoiding costly overstocking.