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Inventory Turnover Ratio Calculator

oboloo Glossary

Inventory Turnover Ratio Calculator

The Inventory Turnover Ratio Calculator is a key measure of business success. It tracks how efficiently your company is managing its inventory over a set period of time, and helps to identify potential issues that can be corrected to improve performance. By inputting the number of times an inventory item has been sold or used during a given period and the total value of that item at cost, you will receive an easy-to-understand calculation of your rate of inventory turnover. Along with this, you’ll gain helpful insights into the strengths of your supply chain and opportunities for improvement. Ultimately, this critical metric lets you make informed decisions about where to focus resources to optimize productivity and profits.

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