Inventory Turnover

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What it means

COGS ÷ Average Inventory — how many times inventory sells through per year.

Why it matters

Slow inventory = tied-up cash, markdowns, obsolescence (deadly for shoes).

How to calculate — with Cawan's Shoes

Cawan's: $250M COGS / $50M avg inventory = 5x. Days on hand = 365/5 = 73.

What's at stake if you ignore this

Old stock kills retail margins.