Stock Turnover
Number of times inventory is sold and replaced over a given period. A logistics efficiency indicator.
Stock turnover measures how quickly you move through your inventory. A high ratio means you sell quickly; a low ratio indicates overstock or unsold goods.
Calculation: Turnover = Cost of Goods Sold / Average Inventory.
A turnover of 6 means you renew your stock 6 times per year (roughly every 2 months). The target varies by industry: fashion aims for 4-6, food 12+, electronics 6-8.
Slow-moving stock ties up cash and risks obsolescence. Fullmetrix analyzes stock velocity by product to identify items to restock and those to clear out.
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