Turn It Over!

Every company wants to move their inventory quickly. The longer it stays on the shelf, the more money it costs to keep it there. Some products go bad (food) and some products rust (metals). But even if the products do not go bad they occupy space that could be used for products that go out the door more quickly and therefore make more money. The phrase we are talking about today is inventory turns. Another way to speak of this inventory turnover rate.

Definition: Inventory turns is a formula that measures how quickly products move through a company.

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