Annual Inventory Turns is the annual number of times a business can sell and replace the items in its inventory. By measuring this performance statistic, businesses gain insights into their stock rotation rate, allowing them to make informed decisions about their inventories. The higher the number of turns, the more efficiently the company is managing its inventory. This can help ensure that customers receive what they need when they need it, and avoid costly tie-ups of capital in excess stock. With improved visibility into stock levels and better management of purchasing cycles, companies can generate additional revenue opportunities and streamline operations for increased profitability.