what does an inventory turnover ratio tell you

what does an inventory turnover ratio tell you is an important financial metric that measures how often a company sells and replaces its inventory over a specific period. A higher inventory turnover ratio indicates that a company is efficiently selling products and replenishing stock, while a lower ratio may suggest overstocking, underperformance, or slow-moving inventory. This metric is crucial for assessing inventory management and making informed decisions about purchasing and sales strategies.