The inventory turnover ratio helps businesses and investors understand how many times, in a given period, items have been sold and restocked by a company. Find out why it matters.

Grocery stores will have a much higher inventory turnover rate than car dealerships, for example. Market demand for certain items will influence turnover rates and ratios. Inventory turnover ratio isn ...

As an example, achieving a 5 for an inventory turnover ratio mans that the goods are sold and restocked five times a year, on average. For most industries, a ratio between 5 and 10 is considered ...

Wood Industry The average inventory turnover in the lumber industry is 10. This means that on average, a lumber company has enough inventory on hand to last about 36 days (365/10 = 36.5).

Accounts receivable turnover and inventory turnover are two important ratios used by analysts to measure how efficiently a firm is paying its bills, collecting cash from customers, and turning ...

Companies use turnover to measure how well they perform and how efficiently they operate. They may consider several turnover ratios, including accounts receivable, inventory and total assets.

To calculate inventory turnover, you can divide net sales or cost of goods sold by inventory, the table above shows this stated based on the latter. This gives the number of turnovers, or stock turns.

Based on Mints analysis, nine of the leading solar companies have liability to asset ratios above 50%, and low inventory turnovers. The healthiest company analyzed was thin film s First Solar.

Inventory turnover is just one of many metrics we can use to better understand Tesla's business. However, it does offer insight into the manufacturing climate of the company.