inventory turnover

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inventory turnover definition - business

inventory turnover

A measure indicating the number of times a firm sells and replaces its inventory during a given period, calculated by dividing the cost of goods sold by the average inventory level. A relatively low inventory turnover may be the result of ineffective inventory management (that is, carrying too large an inventory) or carrying out-of-date inventory to avoid writing off inventory losses against income. Also called stock turnover.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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"inventory turnover." Business. 2009

  • Your Dictionary. 5 July 2009
  • <www.yourdictionary.com/business/inventory-turnover>

APA Style

inventory turnover. (2009). In Business

  • Retrieved July 5th, 2009, from www.yourdictionary.com/business/inventory-turnover

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