Inventory Turnover
Inventory turnover is a financial metric used to determine the efficiency of a company in managing its inventory investment. It is calculated by dividing the cost of goods sold (COGS) by average inventory for a given period of time. The resulting number represents the number of times inventory is sold and replaced over the course of a year. Higher inventory turnover is generally considered more favorable as it indicates that a company is selling through its inventory quickly and efficiently. Conversely, a low inventory turnover can signal poor sales or purchasing practices and may lead to excess inventory buildup and carrying costs.
Additional Details
| Metric Name |
Type |
Default Period Type |
| inv_turnover |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
number |
float |