There is no one-size-fits-all answer to what constitutes a good inventory turnover ratio as it varies by industry. However, a general rule of thumb is that a higher ratio often indicates better performance. For example:
Retail Industry: A higher ratio is typically favorable, as it means products are selling quickly. Manufacturing Industry: A moderate ratio is preferred to balance production and demand effectively. Automotive Industry: Typically has a lower ratio due to the longer sales cycle of high-ticket items.