{"id":10192,"date":"2023-03-15T18:45:43","date_gmt":"2023-03-15T13:15:43","guid":{"rendered":"https:\/\/www.tickertape.in\/glossary\/?p=10192"},"modified":"2023-03-15T18:46:14","modified_gmt":"2023-03-15T13:16:14","slug":"inventory-turnover-ratio","status":"publish","type":"post","link":"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/","title":{"rendered":"Inventory Turnover Ratio &#8211; Meaning, Formula and Importance"},"content":{"rendered":"\n<p>All companies need to track what is selling and the rate at which it is selling. This understanding helps to strategise further and increase production. The inventory turnover ratio is one ratio that helps investors analyse the overall inventory picture of a company.&nbsp;<\/p>\n\n\n\n<p>But what does this ratio exactly depict? Let\u2019s read more about the inventory turnover ratio, its formula and its interpretation.&nbsp;<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_22 counter-hierarchy counter-numeric\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">You will Learn About: <\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#What-is-the-inventory-turnover-ratio\" title=\"What is the inventory turnover ratio?\">What is the inventory turnover ratio?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#Inventory-Turnover-Ratio-Main-Highlights\" title=\"Inventory Turnover Ratio &#8211; Main Highlights\">Inventory Turnover Ratio &#8211; Main Highlights<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#Inventory-turnover-formula-and-calculation\" title=\"Inventory turnover formula and calculation\">Inventory turnover formula and calculation<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#Importance-of-inventory-turnover-ratio\" title=\"Importance of inventory turnover ratio\">Importance of inventory turnover ratio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#What-inventory-turnover-tells-you\" title=\"What inventory turnover tells you?\">What inventory turnover tells you?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#Interpretation-of-inventory-turnover-ratio\" title=\"Interpretation of inventory turnover ratio\">Interpretation of inventory turnover ratio<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#What-is-the-ideal-inventory-turnover-ratio\" title=\"What is the ideal inventory turnover ratio?\">What is the ideal inventory turnover ratio?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#How-to-optimise-the-inventory-turnover-ratio\" title=\"How to optimise the inventory turnover ratio?\">How to optimise the inventory turnover ratio?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.tickertape.in\/glossary\/inventory-turnover-ratio\/#FAQs\" title=\"FAQs\">FAQs<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-inventory-turnover-ratio\"><\/span><strong>What is the inventory turnover ratio?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"730\" height=\"467\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-9.png\" alt=\"\" class=\"wp-image-10194\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-9.png 730w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-9-300x192.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-9-300x192@2x.png 600w\" sizes=\"(max-width: 730px) 100vw, 730px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/investmentu.com\/<\/figcaption><\/figure><\/div>\n\n\n<p>The inventory turnover ratio measures the frequency at which a company replaces its inventory relative to the cost of goods sold. The rate at which a company can turn over its inventory is an important indicator of its business performance.&nbsp;<\/p>\n\n\n\n<p>Furthermore, the inventory turnover ratio reflects a company\u2019s inventory management, forecasting, and marketing expertise. Inventory turnover calculation also helps to understand the product lifecycle and the effectiveness of the pricing and marketing strategy, and supplier relationships.<\/p>\n\n\n\n<div class=\"wp-block-uagb-advanced-heading uagb-block-9691db80\"><h2 class=\"uagb-heading-text\"><span class=\"ez-toc-section\" id=\"Inventory-Turnover-Ratio-Main-Highlights\"><\/span>Inventory Turnover Ratio &#8211; Main Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2><\/div>\n\n\n\n<ul>\n<li>The inventory turnover ratio of a company helps to determine the rate at which it converts its inventory to cash.<\/li>\n\n\n\n<li>The inventory turnover ratio divides the cost of goods sold by the average value of inventory.<\/li>\n\n\n\n<li>A high inventory turnover ratio indicates good business performance, proper inventory management, and efficient marketing<\/li>\n\n\n\n<li>A low inventory turnover ratio indicates ineffective inventory management, low demand, or outdated products<\/li>\n\n\n\n<li>An ideal inventory turnover ratio for most industries ranges between 5-10.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Inventory-turnover-formula-and-calculation\"><\/span><strong>Inventory turnover formula and calculation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The inventory turnover ratio formula calculates the time a company would take to sell its current inventory.<\/p>\n\n\n\n<p>A company needs to know how much <a href=\"https:\/\/www.tickertape.in\/glossary\/stock\/\">stock<\/a> it has on hand to calculate the turnover ratio effectively. The mathematical calculation of the inventory turnover ratio involves dividing the cost of goods sold by the average inventory across a timeframe.\u00a0<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"526\" src=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-8.png\" alt=\"\" class=\"wp-image-10193\" srcset=\"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-8.png 1024w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-8-300x154.png 300w, https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/03\/image-8-300x154@2x.png 600w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Image source: https:\/\/accountingmethode.blogspot.com\/<\/figcaption><\/figure><\/div>\n\n\n<p><strong>Inventory turnover ratio<\/strong><strong> = Cost of goods sold \/ Average value of inventory<\/strong><\/p>\n\n\n\n<p><strong>The average value of inventory = [value of inventory at the end of period + value of inventory at the end of the previous period] \/2<\/strong><\/p>\n\n\n\n<p><em>Note: Here, the average inventory value is used because many businesses are seasonal. Using average value helps to offset the effects of seasonality.&nbsp;<\/em><\/p>\n\n\n\n<p>The inventory turnover ratio uses the cost of goods sold instead of sales. This is because the inventory value is based on its cost, whereas the sales price includes the company\u2019s profit. Using the sales figure instead of COGS can lead to an inflated ratio.<\/p>\n\n\n\n<p>Use <a href=\"https:\/\/www.tickertape.in\/screener\/equity?utm_source=glossary&amp;utm_medium=article&amp;utm_campaign=\" target=\"_blank\" rel=\"noreferrer noopener\">Tickertape Stock Screener<\/a> to find the inventory turnover ratio of a company. This takes the data for the past 2 financial years.  <\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Importance-of-inventory-turnover-ratio\"><\/span><strong>Importance of inventory turnover ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The inventory turnover ratio is critical for assessing how fast a company sells its inventory. This information is used to compare the company\u2019s efficiency against industry standards.&nbsp;<\/p>\n\n\n\n<p>However, the ratio depends on the complexity of the business environment and the type of products. For example, retail organisations have considerably higher inventory rates than airline manufacturing companies.&nbsp;<\/p>\n\n\n\n<p>Inventory turnover ratio analysis helps assess if a company has cleared inventories faster than its competitors. This allows investors to decide if the company is a good <a href=\"https:\/\/www.tickertape.in\/glossary\/investment-meaning-types-how-to-invest-and-savings-vs-investments\/\">investment<\/a>.<\/p>\n\n\n\n<p>The importance of the inventory turnover ratio can also be attributed to its ability to measure a company\u2019s liquidity. A high inventory turnover ratio means that the company receives cash more frequently and thus can maintain sufficient liquidity.&nbsp; Hence, organisations always try to maintain a higher ratio to stay financially fit.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-inventory-turnover-tells-you\"><\/span><strong>What inventory turnover tells you?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In general, a higher ratio is considered better. This is because higher inventory turnover rates often mean a higher chance of outperforming competitors.<\/p>\n\n\n\n<p>However, when inflation is high or disruptions in the supply chain, a low inventory turnover rate is advantageous, as it indicates that the inventory has increased before the price hike. For instance, most supply chains took a major hit in the early stages of the pandemic, and many retailers didn\u2019t have enough inventory to meet consumer demands. Such situations can cause high inventory turnover ratios but aren\u2019t preferable.<\/p>\n\n\n\n<p>Furthermore, an inventory item that remains in stock for a very long time poses a high holding cost. The likelihood of it getting sold also goes down\u00a0with time. Thus, most businesses try to maintain their inventory turnover ratio by replacing slow-selling items.\u00a0<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Interpretation-of-inventory-turnover-ratio\"><\/span><strong>Interpretation of inventory turnover ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The inventory turnover ratio varies from industry to industry. Generally, companies dealing with widely affordable products have higher inventory turnovers, whereas those with more expensive products have low inventory turnover ratios.<\/p>\n\n\n\n<p>Here is how different inventory turnover ratios can be interpreted:<\/p>\n\n\n\n<ol>\n<li><strong>High <\/strong><strong>inventory turnover ratio<\/strong><\/li>\n<\/ol>\n\n\n\n<p>High ratios indicate that the company can effectively turn inventory into sales. This suggests that inventory management is good and the sales strategy is effective. High ratios thus indirectly indicate good financial performance and better liquidity. However, a high ratio may also be caused due to insufficient inventory, which isn\u2019t a good sign.<\/p>\n\n\n\n<ol start=\"2\">\n<li><strong>Low inventory turnover ratio<\/strong><strong>s<\/strong><\/li>\n<\/ol>\n\n\n\n<p>Negative or low inventory turnover ratios can mean a lack of demand, obsolete products, or poor inventory management. This can increase the maintenance and handling costs for the company and put the products at risk of becoming obsolete or suffering degradation because of long-term storage. A low ratio is a red flag for potential investors and stakeholders.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"What-is-the-ideal-inventory-turnover-ratio\"><\/span><strong>What is the <\/strong><strong>ideal inventory turnover ratio<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The ideal inventory turnover ratio lies between 5 and 10 for most industries.&nbsp;<\/p>\n\n\n\n<p>This means the company can sell and restock inventory approximately every 1-2 months. The ideal inventory ratio for industries dealing with perishable goods is higher to avoid spoilage.<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"How-to-optimise-the-inventory-turnover-ratio\"><\/span><strong>How to optimise the <\/strong><strong>inventory turnover ratio<\/strong><strong>?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Inventory stored in a warehouse is constantly at risk of becoming obsolete, getting spoiled in storage or being affected by price fluctuations. It also blocks a significant portion of the working <a href=\"https:\/\/www.tickertape.in\/glossary\/what-is-capital-definition-of-capital-types-and-its-importance\/\">capital<\/a> of the business. Businesses reap more benefits if the inventory is quickly converted to cash. So here is how companies can optimise their inventory turnover ratio:<\/p>\n\n\n\n<ol>\n<li>Better forecast the customer demands by using surveys and observing trends<\/li>\n\n\n\n<li>Research of market data<\/li>\n\n\n\n<li>Employ better marketing strategies to improve sales<\/li>\n\n\n\n<li>Reduce inventory price by renegotiating with vendors<\/li>\n\n\n\n<li>Use the discount strategy to improve sales<\/li>\n\n\n\n<li>Restock top-selling products and reduce the underperformers<\/li>\n<\/ol>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The inventory turnover ratio helps determine how fast the company is replacing its inventory. Higher the ratio, the better the inventory movement. Low ratios can be a potential red flag, depicting the sales failing or the inventory being stocked for too long. Analyse the ratio to understand the inventory movement of a company and its liquidity.&nbsp;<\/p>\n\n\n\n<h2><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-uagb-faq uagb-faq__outer-wrap uagb-block-19939799 uagb-faq-icon-row uagb-faq-layout-accordion uagb-faq-expand-first-true uagb-faq-inactive-other-true uagb-faq__wrap uagb-buttons-layout-wrap uagb-faq-equal-height\" data-faqtoggle=\"true\" role=\"tablist\">\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-e5a3e619\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>What are the limitations of the inventory turnover ratio?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">The inventory turnover ratio may not always be an efficient indicator of financial health. For instance, a high turnover ratio can be due to insufficient stocking, and a low ratio could be due to temporary changes.\u00a0<\/p><\/div>\n\n\n\n<div class=\"wp-block-uagb-faq-child uagb-faq-child__outer-wrap uagb-faq-item uagb-block-4f4e4f6c\" role=\"tab\" tabindex=\"0\"><div class=\"uagb-faq-questions-button uagb-faq-questions\"><span class=\"uagb-icon uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M432 256c0 17.69-14.33 32.01-32 32.01H256v144c0 17.69-14.33 31.99-32 31.99s-32-14.3-32-31.99v-144H48c-17.67 0-32-14.32-32-32.01s14.33-31.99 32-31.99H192v-144c0-17.69 14.33-32.01 32-32.01s32 14.32 32 32.01v144h144C417.7 224 432 238.3 432 256z\"><\/path><\/svg><\/span><span class=\"uagb-icon-active uagb-faq-icon-wrap\"><svg xmlns=\"https:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 448 512\"><path d=\"M400 288h-352c-17.69 0-32-14.32-32-32.01s14.31-31.99 32-31.99h352c17.69 0 32 14.3 32 31.99S417.7 288 400 288z\"><\/path><\/svg><\/span><span class=\"uagb-question\"><strong>Can discounts be offered to improve the inventory turnover ratio?<\/strong><\/span><\/div><p class=\"uagb-faq-content\">Yes, offering discounts is a commonly used strategy to improve the ratio. However, it can affect the return on investment. Thus, businesses must weigh all aspects before using this strategy.<\/p><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>All companies need to track what is selling and the rate at which it is selling. This understanding helps to strategise further and increase production. The inventory turnover ratio is one ratio that helps investors analyse the overall inventory picture of a company.\u00a0<\/p>\n","protected":false},"author":96,"featured_media":9966,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1.png","uagb_featured_image_src":{"full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1.png",2086,1086,false],"thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-150x150.png",150,150,true],"medium":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-300x156.png",300,156,true],"medium_large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1.png",768,400,false],"large":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-1024x533.png",770,401,true],"1536x1536":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-1536x800.png",1536,800,true],"2048x2048":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-2048x1066.png",2048,1066,true],"authorship-box-avatar":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-150x150.png",150,150,true],"authorship-box-related":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-70x70.png",70,70,true],"post-thumbnail":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-270x180.png",270,180,true],"contentberg-main":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-770x515.png",770,515,true],"contentberg-main-full":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-1170x508.png",1170,508,true],"contentberg-slider-stylish":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-900x515.png",900,515,true],"contentberg-slider-carousel":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-370x370.png",370,370,true],"contentberg-slider-grid-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-554x466.png",554,466,true],"contentberg-slider-grid-b-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-306x466.png",306,466,true],"contentberg-slider-bold-sm":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-150x150.png",150,150,true],"contentberg-grid":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-370x245.png",370,245,true],"contentberg-list":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-260x200.png",260,200,true],"contentberg-list-b":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-370x305.png",370,305,true],"contentberg-thumb":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-87x67.png",87,67,true],"contentberg-thumb-alt":["https:\/\/www.tickertape.in\/glossary\/wp-content\/uploads\/2023\/02\/2-1-150x150.png",150,150,true]},"uagb_author_info":{"display_name":"Nikitha","author_link":"%3Fmolongui_byline=true%26mca="},"uagb_comment_info":0,"uagb_excerpt":"All companies need to track what is selling and the rate at which it is selling. This understanding helps to strategise further and increase production. The inventory turnover ratio is one ratio that helps investors analyse the overall inventory picture of a company.\u00a0","_links":{"self":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10192"}],"collection":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/users\/96"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/comments?post=10192"}],"version-history":[{"count":5,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10192\/revisions"}],"predecessor-version":[{"id":10199,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/posts\/10192\/revisions\/10199"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media\/9966"}],"wp:attachment":[{"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/media?parent=10192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/categories?post=10192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tickertape.in\/glossary\/wp-json\/wp\/v2\/tags?post=10192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}