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Compute Inventory Turnover

oboloo Glossary

Compute Inventory Turnover

Compute Inventory Turnover is a business metric used to measure the efficiency of an organization’s inventory management process. It is calculated by taking the cost of goods sold over a period of time and dividing it by the average value of inventory over the same period. A higher turnover indicates that the organization is efficiently managing its inventory and successfully selling goods in a timely manner. Ultimately, this means that organizations can maintain their stock levels at optimal levels, reduce waste, and maximize profits. In short, Compute Inventory Turnover is vital for businesses who want to stay competitive and be successful in today’s economy.

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