Rivinvaihto
Rivinvaihto, also known as inventory turnover, is a financial metric used to measure how efficiently a company manages its inventory. It indicates the number of times a company sells and replaces its inventory within a specific period, typically a year. A high inventory turnover ratio suggests strong sales and efficient inventory management, while a low ratio may indicate weak sales or overstocking.
The formula to calculate inventory turnover is:
Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory
Where Cost of Goods Sold is the total cost of producing the goods sold by the company
Inventory turnover is crucial for businesses as it impacts their cash flow, profitability, and overall operational
However, the optimal inventory turnover ratio varies by industry. For example, industries with perishable goods, like
In conclusion, rivinvaihto is a vital metric for businesses to monitor and manage their inventory effectively.