IT
Inventory Turnover
aka Turnover
The inventory turnover KPI allows you to know how much of your average inventory your company has sold in a period. The KPI gives you a picture of your company’s sales strength and production efficiency. [1] [2]
A good inventory turnover ratio is between 5 and 10 for most industries, which indicates that you sell and restock your inventory every 1-2 months. This ratio strikes a good balance between having enough inventory on hand and not having to reorder too frequently. [3]
[1] Retrieved May 21, 2021, from https://www.accountingdepartment.com/blog/12-key-performance-indicators-you-should-be-tracking
[2] Turnover. Retrieved May 21, 2021, from https://www.bernardmarr.com/default.asp?contentID=788
[3] . Retrieved May 21, 2021, from https://www.skubana.com/blog/good-inventory-turnover-ratio
[4] 29 Financial KPIs for Your Financial KPI Dashboard | Scoro. Retrieved May 21, 2021, from https://www.scoro.com/blog/financial-kpis-for-financial-kpi-dashboard/