In industries such as retail, success depends on management's ability to make or buy the right amount of inventory and to move that inventory through the distribution system as quickly as possible.

When discussing turnover in relation to inventory, it is a reference to how quickly the company is pulling in product sales. To determine inventory turnover, you need to keep close track of the ...

An organization holds inventory in the form of raw materials and finished goods. Inventory comprises the raw materials and finished goods held by the organization during a given period. From an ...

Having spent 17 years in the business of accounting and financial analysis, it's upsetting to see how few founders understand their company's inventory turnover. And even fewer realize it's a problem.

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Investopedia / Michela Buttignol Annual ...

Andriy Blokhin has 5+ years of professional experience in public accounting, personal investing, and as a senior auditor with Ernst & Young. In accounting, inventory represents a company's raw ...

Tesla lags behind the auto manufacturing heavyweights on one key metric. What does that mean for the electric vehicle maker? This figure is especially important given that Tesla is about to begin what ...

There’s no magic formula for knowing how much inventory to carry, but there are best practices and calculations to follow. Many, or all, of the products featured on this page are from our advertising ...