Finance 227, 47 · Services 23, 84 · Retail 13, 79 · Energy 9, 97 · Transportation 9, 05 · Technology 7, 82 · Public Services 7, 02 · Consumer Discretionary 5, 94. Inventory turnover is generally higher in the retail industry. The inventory of equipment and machinery will be renewed much less frequently, but will have a higher profit margin per product. Grocery stores and perishable retailers have the highest inventory turnover, where profit margins are lower but sales are made in higher volumes. The financial ratio must be compared with that of the competition and with the industry average.
This indicates that Sunny's main competitor, Luxetica, may have products that are too expensive or that management may not have correctly estimated demand. It also means that Sunny Sunglasses is more in line with the industry's highest averages than its closest competitor. The company has forecast demand more accurately and, at the same time, has kept inventory at an acceptable level with respect to sales. The retail sector generally has a higher inventory turnover than other industries, as products are less expensive and are invoiced more quickly.
Holding inventories for too long in the retail industry risks amortizing them, as seasonality and new product lines could quickly lead to lower demand and slower sales for older inventories. The information below exemplifies the retail sector's delicate balance in monitoring appropriate inventory levels throughout the year. Software companies have very low inventory levels compared to other assets. The software industry has the advantage of maintaining low inventory levels, as software is easily reproduced, which can result in extremely high inventory turnover rates. Sunny Sunglasses Shop liquidates its inventory every 24 days, while the specialty retail industry has an average of 37 days.
The Luxottica Group maintains its inventory for 114 days, three times more than the industry average. Returning from inventory turnover to the main page of the analysis of financial ratios and financial statements. Does anyone know what the average inventory turnover rate is in the aviation MRO industry? Can I know the industry's average inventory turnover rate for a pharmaceutical wholesale company? If industry standards are higher than the company's billing days, what's the reason for this? Does anyone know the turnover rate of the beauty industry? Or you compare it to, for example, a specialty store.
