Target Inventory Turnover is a business metric that indicates how well a company utilizes its inventory to generate sales. It can be calculated by dividing the Cost of Goods Sold (COGS) by the average inventory value over a certain period of time. The higher the Target Inventory Turnover, the more efficient a company’s operations and asset utilization are, allowing them to free up capital for other investments or initiatives. This metric is an important indicator of the overall health of the business and can be used to set future inventory and sales goals.