Inventory Turnover
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Formula
(Total Sales - Cost of Sales) / (Inventory remaining at end of year)
Services
Role
C-Level, VP / DirectorThe Inventory Turnover KPI measures how often you are able to sell off your entire in-stock inventory in a given year. This KPI is closely related to your supply chain, and indicates the ability of your organization to generate sales and increase revenue. As well, it's important to move aging inventory since it the cost of carrying inventory increases at the same time the value of that inventory decreases.
