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Understanding Stock Turnover Ratio and Inventory Turnover What is Stock Turnover Ratio? The Stock Turnover Ratio is a crucial metric for assessing how efficiently a business manages its inventory. This ratio measures how often inventory is sold and replaced over a specific period, providing insights into inventory management and sales performance. Why is Inventory Turnover Important? Inventory Turnover is essential for evaluating a company's operational efficiency. A high turnover rate indicates that inventory is sol... more