merchandise turnover

merchandise turnover refers to the rate at which a company sells and replaces its inventory within a given period. A high merchandise turnover ratio indicates that a company is efficiently selling its products, while a low ratio suggests that inventory may be moving slowly, leading to potential overstocking and missed opportunities. This metric is vital for businesses to assess the efficiency of their inventory management and the demand for their products. By calculating the turnover, businesses can optimize stock levels and improve sales strategies.