⚡ Tier 2 - ImportantID: inventoryTurnover
Inventory Turnover
How many times inventory is sold and replaced over a year
In Simple Words (Zero Jargon):
How fast your stock sells out and gets replenished; selling fast frees up cash, while slow stock traps capital and forces painful clearance discounts.
Official Mathematical Equation
Inventory Turnover = Cost of Goods Sold (COGS) ÷ Average Inventory Value
Why It Is Critical
Directly impacts marketing: running ads on out-of-stock items burns ad budget, while slow-moving stock requires targeted bundle promotions before becoming dead inventory.
What You Get: Coordination between marketing spend and warehouse stock levels to prevent ad waste on stockouts.