Morningstar(Morn) Financials: Inventory Turnover Compared To Industry Average, Plus Other Key Ratios
fixed asset turnover
payables turnover
receivables turnover
total asset turnover
working capital turnover
Growth Trend (Last 5 Years)
Ratio Definition and Interpretation
Name: Inventory Turnover
Definition: Inventory turnover measures how quickly the company sells and replaces its inventory. A higher turnover means products are selling fast and inventory isn’t sitting idle. Slow turnover may suggest weak sales, poor demand forecasting, or obsolete inventory piling up — all of which can tie up cash unnecessarily.
Interpretation:
None
Formula: Inventory Turnover = Cost of Goods Sold / Average Inventory
Good Range: Typically 4 to 12 depending on industry.