ECONOMICS

Detailed explanation-1: -Inventory turnover, or the inventory turnover ratio, is the number of times a business sells and replaces its stock of goods during a given period. It considers the cost of goods sold, relative to its average inventory for a year or in any a set period of time.

Detailed explanation-2: -Inventory turnover is the rate that inventory stock is sold, or used, and replaced. The inventory turnover ratio is calculated by dividing the cost of goods by average inventory for the same period. A higher ratio tends to point to strong sales and a lower one to weak sales.

Detailed explanation-3: -What Is Inventory Turnover? Inventory turnover is a financial ratio showing how many times a company turned over its inventory relative to its cost of goods sold (COGS) in a given period.

Detailed explanation-4: -The average inventory turnover period is one year. Some companies will choose to measure their inventory turnover over a period of a month or business trading quarter.

Detailed explanation-5: -The stock turnover ratio formula is the cost of goods sold divided by average inventory.