Inventory turnover measures the number of times on the average the inventory was sold during the period.

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Inventory turnover is calculated by dividing the cost of goods sold by the average inventory. This gives an indication of how efficiently a company is managing its inventory and how quickly inventory is being sold and replaced. The higher the inventory turnover ratio, the better it is for the company as it implies that they are selling their inventory quickly, generating revenue and avoiding inventory obsolescence or spoilage. So, inventory turnover does measure the number of times the inventory was sold during the period.

Inventory Turnover Measures the Number of Times on the Average