Inventory turns calculation is an essential business metric that helps assess the efficiency of your inventory management. It measures how many times an inventory has been sold and replaced over a specific period of time, giving you a clear idea of how well your stock is being used up. By calculating the inventory turns rate, you can identify potential problems in inventory management before they become more serious. Knowing your numbers can help you make decisions on where to spend money; helping allocate resources correctly and ensure you are making the most out of your investments.