GlossaryEN1 min readUpdated: Jun 25, 2026
Inventory Turnover Analysis
Supply chain managers, controllers, and warehouse specialists use inventory turnover analysis to measure how many times a company's stock is fully replenished over a given period.
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Source: https://www.investopedia.com/terms/i/inventoryturnover.asp
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Logistics concept
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Definition & Explanation
Supply chain managers, controllers, and warehouse specialists use inventory turnover analysis to measure how many times a company's stock is fully replenished over a given period. The ratio is calculated by dividing the cost of goods sold (or goods shipped) by the average inventory value, producing a dimensionless figure. High turnover reflects efficient warehouse operations and strong cash conversion; low turnover points to excess stock or sluggish demand. The metric serves as a core KPI for internal stock reviews and competitive benchmarking alike. It is distinct from Days Inventory Outstanding (DIO), which expresses the same relationship in days rather than as a ratio.
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