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Glossary > Inventory Turnover TTM

Inventory Turnover, Trailing 12m

What does Inventory Turnover TTM mean?

Inventory turnover is a measure of the number of times inventory was sold or used in the last year. It is defined as Cost of Goods Sold divided by Average Inventory. COGS is used instead of sales because sales are recorded at market value, while inventories are usually recorded at cost. This figure should be compared against industry averages.