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About Inventory Turnover
The Inventory Turnover measures the how well the company can manage to sell its inventory. Another way of saying this is how efficiently the company converts inventory into sales.
Interpreting the Calculator Results
If Inventory Turnover increases over time:
An increasing Inventory Turnover usually indicates the company is more efficiently able to convert its inventory into sales.
If Inventory Turnover decreases over time:
A decreasing Inventory Turnover usually indicates the company is less efficiently able to convert its inventory into sales.
If Inventory Turnover stays the same over time:
An unchanged Inventory Turnover usually indicates the ability of the company to convert its inventory into sales has remained the same.