GlossaryEN1 min readUpdated: Jun 22, 2026

Inventory turnover

Logistics managers and warehouse operators use inventory turnover to gauge how often average stock is consumed and replenished within a set period, typically one year.

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Last updated: 22 June 2026Published: 19 June 2025

Source: https://de.wikipedia.org/wiki/Lagerumschlag

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Logistics Concept

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Definition & Explanation

Logistics managers and warehouse operators use inventory turnover to gauge how often average stock is consumed and replenished within a set period, typically one year. The metric is calculated by dividing the cost of goods issued by the average inventory level. High turnover signals lean stock management and low carrying costs; low turnover points to excess inventory or slow-moving items, both of which strain cash flow and warehouse profitability. In contract logistics and freight forwarding, the figure feeds directly into pricing models and storage capacity planning. It should not be confused with cargo handling, which refers to the physical loading and unloading of goods and says nothing about replenishment cycles.

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