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Inventory to Revenue Ratio

The inventory to revenue ratio refers to total inventory against total revenue. It can also mean a measure of the number of times average inventory turns over or gets sold in a particular period.

Inventory to revenue ratio also means the number of times a business sells its total average inventory in a particular period. The ratio effectively measures how a company turns its inventory into sales.

The inventory to revenue ratio also portrays the effective management of coasts regarding inventory and whether there is enough or little inventory.

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