Inventory Turnover Ratio

The inventory ratio is computed by dividing Cost of Goods Sold by Average Inventory.

This is the ratio that tells how many times in a given period of time you sold your inventory and had to buy more. If you replaced your inventory 6 times in a year, that means you sold it faster than someone who replaced theirs only three times in a year.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/inventory-turnover-ratio/