inventory turnover ratio definition
Inventory Turnover Ratio. Inventory turnover is an efficiency ratio which calculates the number of times per period a business sells and replaces its entire batch of inventories.It is the ratio of cost of goods sold by a business during an accounting period to the average inventories of the business during the period.nventory Turnover Ratio. Inventory turnover is an efficiency ratio which calculates the number of times per period a business sells and replaces its entire batch of inventories.