oboloo

oboloo Glossary

Ideal Inventory Turnover Ratio

oboloo Glossary

Ideal Inventory Turnover Ratio

Ideal Inventory Turnover Ratio is a measure of how efficiently your business is using its inventory. It shows how many times you’ve sold and replaced your stocks in a given period. A high turnover ratio indicates that your sales are going well and that you’re keeping up with demand, while a low ratio means that you may be keeping too much stock on hand or not selling quickly enough. To determine your ideal ratio, analyze your available data and identify patterns to ensure you’re meeting customer needs while avoiding costly overstocking.

Want to find out more about procurement?

Access more blogs, articles and FAQ's relating to procurement

Oboloo transparent

The smarter way to have full visibility & control of your suppliers

Contact

Feel free to contact us here. Our support team will get back to you as soon as possible

Oboloo transparent

The smarter way to have full visibility & control of your suppliers

Contact

Feel free to contact us here. Our support team will get back to you as soon as possible

© 2024 oboloo Limited. All rights reserved. Republication or redistribution of oboloo content, including by framing or similar means, is prohibited without the prior written consent of oboloo Limited. oboloo, Be Supplier Smart and the oboloo logo are registered trademarks of oboloo Limited and its affiliated companies. Trademark numbers: UK00003466421 & UK00003575938 Company Number 12420854. ICO Reference Number: ZA764971