What is Inventory Turnover Ratio?
Inventory turnover shows how many times a company sells and replaces its inventory in a year — measuring operational efficiency and demand.
Formula
Inventory Turnover = COGS ÷ Average Inventory
How to Interpret
Higher turnover indicates efficient inventory management and strong demand. Low turnover may signal slow-moving or obsolete stock.
Typical Ranges
FMCG: 8-15x, Retail: 5-10x, Manufacturing: 4-8x
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by Inventory Turnover Ratio.
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