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Inventory Turnover

Purpose -

Evaluates how efficiently inventory is used and replenished.

Operational Definition -

Cost of Goods Sold (COGS)/Average Inventory

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Higher the better

Recommended Frequency - 

Monthly

External References -

https://www.klipfolio.com/resources/kpi-examples/supply-chain/inventory-turnover

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