Inventory Turnover Period is a key metric for businesses to measure efficiency and performance. It represents the number of times inventory is sold and replaced in a given period of time. The formula used to calculate the Inventory Turnover Period is: Inventory Turnover Period = Cost of Goods Sold divided by Average Inventory. This formula provides companies with invaluable insight into their production rate and customer demand. By understanding this metric, businesses can make informed decisions on pricing, production, customer service, and other areas that contribute to long-term success.