Inventory Turnover is a key measure of business performance that looks at the rate at which you buy and sell products or inventory over a specific period of time. Put simply, it’s a calculation of how quickly inventory sells through your entire operation, from production to sales. The higher the number, the better; this indicates that items are selling quickly, meaning that new stock needs to be ordered regularly. On the other hand, a low turnover indicates an issue either in pricing, marketing, customer service or purchasing. A healthy balance of inventory turns can help you increase both customer loyalty and revenue.