Inventory Turn

Inventory turn, also known as inventory turnover, is a measure of the number of times a company’s inventory is sold and replaced over a given period. It is calculated by dividing the cost of goods sold by the average inventory for a specific period. A high inventory turn indicates that a company is selling its products quickly, which is generally seen as a positive indicator of business performance. In the shipping industry, inventory turn is an important metric for companies that transport and store goods as it allows them to manage their inventory levels and ensure they have enough products to meet demand.