Inventories Definition & Examples
Company management, analysts, and traders can use a company's stock turnover to find out how many times it sells its merchandise over a certain period of time. Inventory turnover can point out whether or not a company has an extreme quantity of or too little inventory readily available. As noted above, inventory is assessed as a current asset on a company's stability https://www.simple-accounting.org/ sheet, and it serves as a buffer between manufacturing and order fulfillment. When a list merchandise is offered, its carrying value transfers to the value of goods offered (COGS) category on the earnings statement. Stock turnover represents one of the main sources of revenue generation and subsequent earnings for a company's shareholders. High turnover generally signals sturdy gross sales an...






