A relationship exists between inventory and sales. This is referred to as ‘Inventory Turnover’ or ‘Turnover Ratio’. It is simply the number of days it takes to turn over the dollar value of the inventory. This relationship is important because as the retailer, you would want this number has high as possible.
Inventory is traditionally associated with retail sales, but it includes raw materials for production, real estate in a portfolio, and various other examples. Inventory even includes the depth of labor available for future utility.