is a high inventory turnover ratio good

is a high inventory turnover ratio good typically indicates that a company is selling products quickly and efficiently. A high inventory turnover ratio is generally considered positive, as it suggests strong sales performance and effective inventory management. Companies with high turnover ratios tend to minimize overstocking and reduce the costs associated with holding excess inventory. However, an excessively high ratio may indicate that the company is not maintaining enough inventory to meet customer demand, potentially leading to stockouts. A balanced inventory turnover ratio is essential for maintaining optimal operational efficiency and meeting customer needs.