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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

Formatting Details

Data Format Display Format Unit
float number float