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What is Inventory Turnover

Inventory turnover is a metric that shows how many times inventory is sold and replaced over a given period. High turnover can indicate strong sales or efficient inventory control.

Real-World Example

A retail clothing company that sells and restocks its inventory five times per year has an inventory turnover ratio of 5, signaling good movement of goods and reduced holding costs.

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What We Do

MET CO is a logistics provider built for speed, precision, and growth. We specialize in cross-docking, short-term warehousing, and wholesale distribution, with a strong track record in the grocery and automotive sectors.

As our clients scale, so do we—expanding into eCommerce fulfillment, value-added services, and just-in-time delivery. Our operations are designed to handle both bulk and high-frequency inventory with minimal friction and full visibility.

Whether you need rapid turnarounds, zone-based storage, or reliable outbound execution, MET CO acts as an extension of your supply chain—lean, fast, and aligned to your goals.

Frequently Asked Questions

How do you calculate inventory turnover?

Inventory turnover is calculated by dividing the cost of goods sold (COGS) by the average inventory for a period.

What does a low inventory turnover rate indicate?

A low turnover rate may indicate overstocking, slow sales, or inefficient inventory management.

Why is inventory turnover important for businesses?

It helps businesses assess sales performance, optimize inventory levels, reduce holding costs, and improve supply chain efficiency.

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