Inventory turnover ratio is often presented as a basic operational KPI, but for modern e-commerce and retail businesses, it plays a much bigger role. It sits at the intersection of inventory management, cash flow, and growth.
At a fundamental level, inventory exists to support sales. But inventory is also one of the largest consumers of capital in most businesses. Every unit sitting in a warehouse represents cash that has already been spent and cannot be used elsewhere until that unit is sold. The inventory turnover ratio helps answer a critical...








.png)




