Inventory Turnover Calculator Inventory turnover is a way to measure how effectively funds invested in inventory are being converted into sales revenue.
Working with your inventory turnover Other than pure service business, almost all businesses need inventory. To effectively use your working capital, the key is to have the least inventory needed to meet the delivery expectations of your customers. Capital intensive businesses will usually have lower inventory turnover rates than other businesses. You may want to compare your rates with competitors or other companies in similar lines of business. |