Inventory turnover ratio is an important metric for retailers, allowing them to measure their inventory efficiency and manage costs. The ratio measures the number of times a retailer’s stock is sold and replaced over a certain period of time. A higher turnover ratio means that the retailer is selling and replacing their inventory more frequently, which usually translates into higher profits and lower costs. This important statistic allows business owners to ensure their operations are running smoothly and efficiently, and that they’re investing in the right stock and suppliers. Knowing exactly when to order, how much to order and who to buy from can be the difference between success and failure in the retail industry.