There is no simple rule for inventory turnover, except that a high ratio is preferable provided inventory is adequate to meet demand.

Question

Quizplus · Accepted Answer

While a high inventory turnover ratio is generally seen as positive, it is important to note that inventory levels also need to be sufficient to meet customer demand. Therefore, there is no one-size-fits-all rule for inventory turnover and the ideal ratio may vary based on the industry, company, and other factors.

There Is No Simple Rule for Inventory Turnover, Except That