what can inventory tell you about a business 
one way to track the performance of a business is the speed of its inventory turnover when a business sells inventory at a faster rate than its competitors it incurs lower holding costs and decreased opportunity costs as a result they often outperform since this helps with the efficiency of its sale of goods the bottom lineinventory provides businesses with materials to keep their operations going this includes any raw materials needed in the production of goods and services as well as any finished goods that companies sell to consumers on the market managing inventory and determining the turnover rate can help companies determine just how successful they are and where they can pick up the slack when the profits begin to dry up 