# Inventory Turnover

*Last updated: 2026-06-26*

> Inventory turnover measures how many times a company's entire stock is sold and replenished within a given period.

Inventory turnover measures how many times a company's entire stock is sold and replenished within a given period. It is calculated by dividing the cost of goods sold (COGS) by average inventory on hand. High turnover reflects rapid stock movement and low capital tie-up; low turnover signals overstock, weak demand, or poor procurement planning. Logistics managers, supply chain analysts, and controllers use the ratio to benchmark warehouse efficiency and flag slow-moving product lines. Unlike inventory aging, which assesses individual lots, turnover captures aggregate performance across a product category or the full assortment.

**Source:** [https://www.investopedia.com/terms/i/inventoryturnover.asp](https://www.investopedia.com/terms/i/inventoryturnover.asp)

## Quick Facts

| Property | Value |
|---|---|
| Term | Inventory Turnover |
| Language | EN |
| Word count | 92 |
| Last updated | 2026-06-26 |
| Source | https://www.investopedia.com/terms/i/inventoryturnover.asp |

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