Stock Turnover Rate, also known as Inventory Turnover, is a business metric that measures the number of times inventory is used or sold during a given period. It’s calculated by taking the cost of goods sold (COGS) and dividing it by the average inventory value for the same period. A high turnover rate indicates that businesses are effective at producing or selling their products, while a low rate suggests there may be an issue with overstocking or inefficient selling strategies. Knowing your Stock Turnover Rate is essential for managing stock levels, setting prices, and tracking overall performance.