---
title: "Definition of Inv Turn"
url: https://signalscreener.fr/definition/inventory-turnover/
markdown_url: https://signalscreener.fr/definition/inventory-turnover.md
description: "Measures how many times a company sells and replaces its inventory during a period."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "Inv Turn"
  - "Inventory Turnover"
translations:
  de: https://signalscreener.fr/de/definition/inventory-turnover.md
  es: https://signalscreener.fr/es/definition/inventory-turnover.md
  fr: https://signalscreener.fr/fr/definition/inventory-turnover.md
  pt: https://signalscreener.fr/pt/definition/inventory-turnover.md
---

# Inventory Turnover

## What is Inv Turn?

Measures how many times a company sells and replaces its inventory during a period.

## Think of it like this

Like how many times a grocery store empties and refills its shelves - faster is usually better.

## Formula

```
Inventory Turnover = COGS ÷ Average Inventory
```

- **COGS**: Cost of Goods Sold
- **Average Inventory**: (Beginning + Ending Inventory) ÷ 2

## Why it matters

- Shows inventory management efficiency
- High turnover = less capital tied up
- Low turnover may indicate obsolete inventory
- Critical for retail and manufacturing

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 4x | Low | Slow-moving inventory, potential problems |
| 4-8x | Average | Normal for many industries |
| 8-12x | Good | Efficient inventory management |
| > 12x | Excellent | Very fast turnover (groceries, fast fashion) |

## Real-world example

A clothing retailer with declining turnover may have style/sizing issues or overbuying.

---

This is educational content, not financial advice.

Source: [Definition of Inv Turn](https://signalscreener.fr/definition/inventory-turnover/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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