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Quick Ratio

Inventory Turnover

Inventory Turnover is an activity ratio that measures the number of times the average inventory is sold over a period of time, also referred to as: Inventory turns, stockturn, stock turns, and stock turnover. A high number is indicative of efficient operations. A low turnover rate may indicate overstocking, obsolete product, or poor marketing efforts. It is sometimes calculated with sales (instead of COG) and/or inventory (instead of average inventory), but this produces a less accurate number.