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Understanding Stock Turnover Ratio: Maximizing Inventory Efficiency The Stock Turnover Ratio is a critical financial metric that measures how effectively a business manages its inventory. By understanding and optimizing this ratio, companies can enhance their operational efficiency and boost profitability. What is Stock Turnover Ratio? The Stock Turnover Ratio, also known as Inventory Turnover, indicates how many times a company's inventory is sold and replaced over a specific period. A high ratio suggests strong sales... more