Inventory Turnover

Inventory turnover measures how many times inventory is sold and replaced during a period. Higher turnover indicates efficient inventory management and strong sales. The formula is: Cost of Goods Sold divided by Average Inventory. FMCG typically targets 8-12 turns per year for dry goods and 20-50+ for perishables. Low turnover in African markets often signals over-ordering, poor demand forecasting, or distribution bottlenecks.