Inventory Turn is a measurement of how quickly a business can move its inventory. It is calculated by dividing the cost of goods sold (COGS) by the average current inventory value during a specified period. The higher the Inventory Turn, the more efficiently the business is selling off its inventory and making room for new stock. In other words, it’s a measure of how often a company sells its inventory in a given period of time. A high Inventory Turn rate shows that the company has an efficient supply chain, while a low rate shows that the company may have too much inventory on hand.