WHAT DOES INVENTORY TELL ABOUT THE ECONOMY?

What does inventory tell about the economy?

What does inventory tell about the economy?

An inventory turnover is the frequency of how many times a country makes a sale and replaces its inventory. It can also be understood as to what percentage of time the inventory is held. For example, a 26 ratio means that inventory is held at an average of two weeks. It is best to use this ratio to compare one economy within another economy (high turnover is a good sign), because in this cross-economy scale, a good inventory makes a huge difference (Barnard, ...