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Inventory turns

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How can we really define if our inventories are healthy? What are inventory turns?

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Response provides guidance regarding inventory turns.

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How can we really define if our inventories are healthy? What are inventory turns?

Inventory is a part of working capital. Working capital management involves the relationship between a firm's short-term assets and its short-term liabilities. The goal of working capital management is to ensure that a firm is able to continue its operations and that it has sufficient ability to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash. (Studyfinance, 2009)

INVENTORY is defined as the blocked Working Capital of an organization in the form of materials. Inventory is defined as store of goods. As this is the blocked ...

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