Inventory turnover measures how quickly your company goes through the inventory that it has in stock. Managing inventory is tricky because the company must keep enough on hand to satisfy customers, ...

The number of times a business sells and replaces its stock over a given time period is its inventory turnover ratio. The inventory turnover ratio, also sometimes called stock turns or inventory turns ...

Storing inventory is costly to a business. It takes up storage space, must be insured, may be stolen or damaged, may become obsolete before it is sold and may require refrigeration or increase utility ...

Inventory turnover is an indicator of a company’s revenue efficiency. It is the ratio defining how many times the inventory was sold and replaced in a given period of time. The inventory turnover ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Beginning inventory is the book value of a company’s inventory at the start of an accounting period. It is also the value of inventory carried over from the end of the preceding accounting period.

Inventory turnover ratio can help companies better handle product inventory management. Companies like to keep tabs on inventory, and with good reason. Accurate, up-to-date inventory management is a ...

For companies that sell a product, inventory is a major consideration. The more inventory you have, the more money that’s tied up in a static product. Until you sell the product, that money isn’t ...