Inventory Turnover Ratio Interpretation is a metric used to determine how efficiently a business is using its available inventory. The ratio measures the number of times that a company’s entire inventory is sold and replaced over a given period of time. A higher turnover rate indicates that the company is able to efficiently move its products, while a lower turnover rate may suggest that the stock is sitting on shelves for too long. By understanding this ratio, businesses can make more informed decisions about their inventory management strategies and adjust them accordingly.