What is inventory turnover? An explanation from calculation methods to industry benchmarks and points for improvement.

You can understand the calculation method for inventory turnover, industry-specific benchmarks, points to note when looking at the figures, and areas for improvement.

Are you feeling uncertain about the reasons behind increasing inventory, the recurring issues of stockouts and excess inventory, and not knowing the appropriate levels? To address these concerns, the first thing to understand is the basic metric known as "inventory turnover." Inventory turnover is a figure that indicates how much inventory has been replaced over a certain period, serving as a starting point for understanding inventory efficiency and the status of capital retention. This article will clearly explain how to calculate inventory turnover, industry benchmarks, points to consider when looking at the numbers, and areas for improvement. If you want to reassess your company's inventory management, please check the basics in order. *For more detailed content, you can view it through the related links. For more information, please download the PDF or feel free to contact us.*

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