Storing inventory is costly to a business. It takes up storage space, must be insured, may be stolen or damaged, may become obsolete before it is sold and may require refrigeration or increase utility ...

When you get inventory in, how long does it take to sell? The faster your inventory turns over, the more money you're making. Slow turnover may indicate you're not managing inventory well. Calculating ...

Inventory Turnover Ratio plays a pivotal role in understanding how efficiently a company manages its inventory. It measures the frequency at which a company sells and replaces its inventory within a ...

Steven Nickolas is a writer and has 10+ years of experience working as a consultant to retail and institutional investors. Eric's career includes extensive work in both public and corporate accounting ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Inventory turnover ratio can help companies better handle product inventory management. Companies like to keep tabs on inventory, and with good reason. Accurate, up-to-date inventory management is a ...

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 ...

For companies that sell a product, inventory is a major consideration. The more inventory you have, the more money that’s tied up in a static product. Until you sell the product, that money isn’t ...

When I’m meeting with a potential client for the first time, I occasionally tell the story of the best year I ever had as a buyer. It was a year I ran a 2% decrease. Don’t get me wrong, I ran plenty ...

Inventory turnover is an indicator of a company’s revenue efficiency. It is the ratio defining how many times the inventory was sold and replaced in a given period of time. The inventory turnover ...