Inventory turnover is a term that is used interchangeably to refer to the length of time it takes for
the ﬁrm to collect on a sale.

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Inventory turnover refers to the number of times a company sells and replaces its inventory within a given period of time, usually a year. It is a measure of how efficiently a company is managing its inventory. The term used to refer to the length of time it takes for a firm to collect on a sale is called Days Sales Outstanding (DSO) or Accounts Receivable Turnover.

Inventory Turnover Is a Term That Is Used Interchangeably to Refer