Stock turnover rate is a financial metric that measures how a company’s inventory is sold over a given period of time. It is calculated by dividing the cost of soldGS) by the average value of inventory. A high stock turnover rate indicates efficient inventory management and suggests that a company is able to sell its inventory quickly, minimizing the risk of products obsolete or outdated.

On the other hand, a low stock turnover rate may indicate inefficiencies in inventory management, such as overstocking or slow-moving products. Ultimately, the stock turnover rate provides valuable insight into a company’s ability to effectively manage its inventory and meet customer demands.

Editeur de logiciels de Pricing et Supply chain
Pricing and Supply chain software Editor

Trade news

Immerse yourself in the latest Pricing and Supply Chain news!