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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Inventory Turnover  

Definition 1.

A ratio that shows how many times the inventory of a firm is sold and replaced over a specific period.
 

Definition 2.

The ratio of annual sales to average inventory, which measures the speed at which inventory is produced and sold. Low turnover is an unhealthy sign, indicating excess stocks and/or poor sales.
 
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