Inventory turnover benchmarks by industry measure how much a company’s inventory is replaced over a given period of time. This metric is a way to track the efficiency and profitability of a business, as it indicates how effective the company is at managing its supplies. A higher inventory turnover rate means that the company is able to update and move their stock quickly, while a lower rate can signify an inefficient system. Each industry has different inventory turnover rates depending on the length of their product cycle, so tracking these benchmarks helps companies predict how long it will take for them to turn their inventory into sales. By keeping an eye on this metric, businesses can make sure they have just the right amount of stock to meet customer needs.