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What is Inventory Turnover in Retail? (Formulas, Benchmarks, Examples)

Retalon

One of the key inventory metrics retailers track is inventory turnover. Inventory turnover measures how many times a company sells and replaces its inventory during a period. It indicates how efficiently inventory is managed and whether excess inventory is tying up too much capital.

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12 Critical Retail Industry Performance Metrics (2020)

Retalon

Jump Ahead Most Important KPIs for the Retail Industry in 2020 Examples of Retail KPIs that Maximize Inventory ROI 1. Inventory Turnover Ratio 3. Inventory Turnover Ratio. The Inventory Turnover Ratio represents the total cost of goods sold over a period divided by the average inventory cost.