Retail inventory management is the system you use for ordering, storing, and tracking your products. The goal is simple: meet customer demand without tying up all your cash in excess stock.

The inventory turnover formula is a key metric that reveals how many times a business sells and replaces its stock within a specific period. It’s calculated by dividing the Cost of Goods Sold (COGS) by the Average Inventory, giving you a clean snapshot of your operational efficiency.