How Turnover Works
A simple explanation of inventory turns and why it’s one of the most important metrics for small businesses.
What inventory turnover measures
How to calculate turns
Industry benchmarks (distribution vs manufacturing)
What low turns indicate (slow demand, excess buying, too much inventory)
What high turns indicate (efficient buying, strong demand, possible stockout risk)
How turns connect to cashflow, working capital, and service levels
How to improve turns without causing shortages