Inventory turnover shows how many times the average inventory was sold during the year?

Inventory turnover is a financial metric that indicates how efficiently a company manages its inventory by showing how many times it sold and replaced its inventory over a specific period, usually a year. A higher inventory turnover ratio suggests strong sales and effective inventory management, while a lower ratio may indicate overstocking or weak sales. This metric is crucial for assessing a company's operational efficiency and can help identify trends in consumer demand and inventory practices.