is high inventory turnover good

is high inventory turnover good Is high inventory turnover good depends on the context, but generally, a high inventory turnover ratio is considered favorable. It indicates that a business is efficiently selling products and replenishing stock, which can lead to increased profitability and reduced holding costs. However, excessively high turnover might signal stock shortages or missed sales opportunities due to insufficient inventory. A healthy balance ensures that products move quickly while maintaining enough stock to meet customer demand and avoid backorders or delays.