Inventory turnover

Inventory turnover is a big fancy business term that means how quickly a store sells out of stuff that it has to sell. Imagine you have a big toy box full of toys. Every time your friends come over to play, you take out some toys from the box to play with. The more often your friends come over to play, the faster you use up all the toys and have to get new ones. That's kind of like what inventory turnover means.

In a store or a company, they also have a toy box, except it's filled with things they want to sell, like clothes or toys or food. They want to sell all the things as fast as possible to make more money. If the store sells out of a lot of things quickly, it means they have a high inventory turnover. But if the store has things sitting on the shelves for a long time, it means they have a low inventory turnover.

So, high inventory turnover is good for a store because it means they're selling a lot of things and making more money. But if they have a low inventory turnover, it means they're not selling as much as they should be and may have to lower prices or try other things to get people to buy more.