Inventory turnover measures how many times, on average, a company's inventory is sold during the year.

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Inventory turnover is a ratio that measures how many times a company sells and replaces its inventory in a given period of time, usually a year. It is calculated by dividing the cost of goods sold by the average inventory level during the same period. The higher the inventory turnover, the more efficient a company is at managing its inventory and generating sales.

Inventory Turnover Measures How Many Times, on Average, a Company's