An inventory turnover ratio of 10 means that,on average,items are held in inventory for 10 days.

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An inventory turnover ratio of 10 means that the entire inventory is sold and replaced 10 times in a given period (usually a year), not that items are held in inventory for 10 days on average. The inventory holding period can be calculated by dividing the number of days in the period by the inventory turnover ratio. So, if the period is a year (365 days), the inventory holding period for a company with an inventory turnover ratio of 10 would be 36.5 days on average.

An Inventory Turnover Ratio of 10 Means That,on Average,items Are