Understanding Stock Turnover Ratio and Inventory
Turnover
What is Stock Turnover Ratio?
The Stock Turnover Ratio is a crucial metric for assessing
how efficiently a business manages its inventory. This ratio measures how often
inventory is sold and replaced over a specific period, providing insights into
inventory management and sales performance.
Why is Inventory Turnover Important?
Inventory Turnover is essential for evaluating a company's
operational efficiency. A high turnover rate indicates that inventory is sol...
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