What Is Inventory Turnover Ratio and What Does Your Number Tell You?

Ecommerce warehouse with stocked shelving and moving conveyor belt illustrating healthy inventory turnover ratio at a 3PL.

Your inventory turnover ratio is one number that tells you whether your inventory is working for your business or quietly working against it. A high ratio means product is moving; you are selling through stock quickly, freeing up cash and keeping storage costs low. A ratio that is too low means capital is sitting in […]