'INVENTORY TURNOVER' A ratio showing how many times a company's inventory is sold and replaced over a period. The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand or "inventory turnover days."
inventory turnover is a common measurement of the retailer's ability to manage its inventory well. Too high a turn and the retailer is missing sales. Too low and they have more inventory than it needs.