Our online calculator will help you calculate the inventory turnover.
Inventory turnover will tell you how many times, over any desired period, the organization used the average balances of stocks.
This indicates the quality of the stock and management effectiveness, allows to identify the remains of unused, outdated or substandard stocks, the index related to the fact that profit occurs when each "turnover" of inventory (i.e., use in production, operating cycle), under the inventory in this case refers to commodity and stocks (inventories) and production inventory (stocks of raw materials).
In the end, the higher the inventory turnover, the more efficient the production and the less need in working capital for the organization.