Welcome to another installment in our long-running Whiteboard Wednesday series. In this video, James Shores explains why it’s important to pay attention to your inventory turnover ratio.
As I’ve discussed in detail before, inventory turnover is the number of times you sell and replace the inventory in your warehouse(s). Your inventory turnover ratio is calculated by dividing the total cost of goods sold by the average cost of inventory in stock over the course of a year.
We’ll continue to provide helpful content like this on the Fishbowl Blog. Keep coming back for more every week.
Robert Lockard is a copywriter with Fishbowl. He writes for several blogs about inventory management, manufacturing, QuickBooks, and small business. Fishbowl is the #1-requested manufacturing and warehouse management software for QuickBooks users. Robert enjoys running, reading, writing, spending time with his wife and children, and watching movies.