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 Inventory turns, or inventory turnover, measure how many times a company sells and replaces its inventory over a given period—typically calculated as the cost of goods sold divided by average inventory. This metric is crucial because it reflects the efficiency with which a company manages its inventory relative to sales. High inventory turns indicate strong sales and efficient inventory use, minimizing holding costs and reducing the risk of obsolescence. Conversely, low turns may signal overstocking, sluggish sales, or poor inventory management. By tracking and improving inventory turnover, organizations can optimize working capital, enhance cash flow, and ensure that resources are aligned with actual demand—ultimately supporting profitability and operational agility. 

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