Moving inventory out of your warehouse and into your customers' hands is a major objective of running a profitable business. The faster your inventory sells, the quicker you recoup your purchase costs ...
Companies like to keep tabs on inventory, and with good reason. Accurate, up-to-date inventory management is a solid measure of knowing whether production is meeting demand and if products are selling ...
In industries such as retail, success depends on management's ability to make or buy the right amount of inventory and to move that inventory through the distribution system as quickly as possible.
When discussing turnover in relation to inventory, it is a reference to how quickly the company is pulling in product sales. To determine inventory turnover, you need to keep close track of the ...
When most people research a stock, they focus on earnings and revenue growth. Some pay attention to cash flow. Rarely do investors dig a little deeper on the balance sheet and examine things like ...
Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...
Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Investopedia / Michela Buttignol Annual ...
Inventory turnover is an indicator of a company’s revenue efficiency. It is the ratio defining how many times the inventory was sold and replaced in a given period of time. The inventory turnover ...