{"id":15797,"date":"2023-08-24T09:09:59","date_gmt":"2023-08-24T08:09:59","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=15797"},"modified":"2025-03-14T16:06:23","modified_gmt":"2025-03-14T16:06:23","slug":"what-is-inventory-turnover","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/what-is-inventory-turnover\/","title":{"rendered":"What is inventory turnover?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--has-illustration entry-header--has-illustration--generic\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is inventory turnover?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2023-08-24T09:09:59+01:00\">24 August, 2023<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is inventory turnover?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-inventory-turnover\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/staceymcintosh\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/Stacey-McIntosh-350-1.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Stacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p>In the dynamic business environment, performance evaluation isn\u2019t just an option\u2014it\u2019s an absolute necessity. From balance sheets to income statements, companies utilize numerous tools to evaluate their financial health and operational efficiency.<\/p>\n\n\n\n<p>Among these, one key performance indicator (KPI) that often gets overlooked despite its vital role is the inventory turnover ratio. This metric provides substantial insights into the company\u2019s supply chain effectiveness, <a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/inventory-management\/\">inventory management<\/a>, and sales performance.<\/p>\n\n\n\n<p>Inventory turnover is all about understanding your business\u2019s efficiency and effectiveness. Keep reading to uncover the stories your inventory has been waiting to tell, stories that could redefine your business strategies and propel your company to new heights of success.<\/p>\n\n\n\n<p>Here&#8217;s what we cover:<\/p>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-inventory-turnover-a-defining-business-metric\" data-level=\"2\">Inventory turnover: A defining business metric<\/a><\/li><li><a href=\"#h-calculating-inventory-turnover-ratio-the-formula-and-process\" data-level=\"2\">Calculating inventory turnover ratio: The formula and process<\/a><\/li><li><a href=\"#h-determining-a-good-inventory-turnover-ratio-it-s-all-relative\" data-level=\"2\">Determining a good inventory turnover ratio: It&rsquo;s all relative<\/a><\/li><li><a href=\"#h-comparative-analysis-of-2-firms\" data-level=\"2\">Comparative analysis of 2 firms<\/a><\/li><li><a href=\"#h-the-inventory-turnover-ratio-as-a-performance-indicator\" data-level=\"2\">The inventory turnover ratio as a performance indicator<\/a><\/li><li><a href=\"#h-strategies-to-improve-inventory-turnover-ratio-unlocking-enhanced-efficiency\" data-level=\"2\">Strategies to improve inventory turnover ratio: Unlocking enhanced efficiency<\/a><ul><li><a href=\"#h-1-inventory-management-optimization\" data-level=\"3\">1. Inventory management optimization<\/a><\/li><li><a href=\"#h-2-sales-boosting-strategies\" data-level=\"3\">2. Sales boosting strategies<\/a><\/li><li><a href=\"#h-3-supplier-relationship-management\" data-level=\"3\">3. Supplier relationship management<\/a><\/li><li><a href=\"#h-balance-is-key\" data-level=\"3\">Balance is key<\/a><\/li><\/ul><\/li><li><a href=\"#h-final-thoughts-on-inventory-turnover\" data-level=\"2\">Final thoughts on inventory turnover<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-inventory-turnover-a-defining-business-metric\">Inventory turnover: A defining business metric<\/h2>\n\n\n\n<p>Inventory turnover is a crucial business metric that gauges how many times a company sells and replaces its inventory within a given time frame, typically a fiscal year. Essentially, it indicates the speed at which a business can sell its inventory.<\/p>\n\n\n\n<p>Understanding what inventory turnover is and the role it plays in business can unveil many hidden aspects of the company\u2019s operations. While it might sound like a simple stock-keeping measure, the inventory turnover ratio offers unique insights into the efficiency of inventory management as well as the efficacy of sales strategies.<\/p>\n\n\n\n<p>Having a good <a href=\"https:\/\/www.investopedia.com\/terms\/i\/inventoryturnover.asp\" target=\"_blank\" rel=\"noopener noreferrer\">inventory turnover ratio<\/a>, which implies a fast sell-replace cycle, is often synonymous with strong sales performance and effective inventory management. However, a \u201cgood\u201d ratio isn\u2019t a one-size-fits-all concept\u2014it varies significantly across different industries and business models. As you\u2019ll learn by reading on, there is more to inventory turnover than whether it is high or low.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-calculating-inventory-turnover-ratio-the-formula-and-process\">Calculating inventory turnover ratio: The formula and process<\/h2>\n\n\n\n<p>The process of calculating the inventory turnover ratio is quite straightforward. The inventory turnover formula is as follows:<\/p>\n\n\n\n<p>Inventory Turnover Ratio = Cost of Goods Sold (COGS) \/ Average Inventory<\/p>\n\n\n\n<p>In this formula, COGS denotes the total cost associated with all the goods a company sold during a specific period. On the other hand, Average Inventory is the mean value of inventory during that same period. You can calculate Average Inventory by adding the value of the inventory at the start of the period to the value at the end, then dividing it by 2.<\/p>\n\n\n\n<p>Consider an apparel retailer whose COGS for the fiscal year amounts to \u00a3700,000. At the beginning of the year, they had an inventory worth \u00a3200,000, which increased to \u00a3300,000 by year-end.<\/p>\n\n\n\n<p>Firstly, to calculate the Average Inventory, we add the starting and ending inventory values, then divide by 2:<\/p>\n\n\n\n<p>Average Inventory = (\u00a3200,000 + \u00a3300,000) \/ 2 = \u00a3250,000<\/p>\n\n\n\n<p>Next, we plug the COGS and Average Inventory into our formula to calculate the inventory turnover ratio:<\/p>\n\n\n\n<p>Inventory Turnover Ratio = \u00a3700,000 \/ \u00a3250,000 = 2.8<\/p>\n\n\n\n<p>The turnover ratio of 2.8 implies that the retailer has sold and replaced its inventory approximately 2.8 times during the year. This means the complete inventory has gone through nearly three full cycles of sell and replace during the year, revealing the speed of sales and inventory replacement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-determining-a-good-inventory-turnover-ratio-it-s-all-relative\">Determining a good inventory turnover ratio: It\u2019s all relative<\/h2>\n\n\n\n<p>The concept of a \u201cgood\u201d inventory turnover ratio is highly industry-specific and relative. For example, grocery stores typically exhibit high inventory turnover due to the perishable nature of their goods, making quick sales very important. Conversely, luxury goods retailers usually demonstrate a lower turnover ratio since their high-priced items sell less frequently.<\/p>\n\n\n\n<p>In general, a higher inventory turnover ratio signifies efficient inventory management and strong sales performance. It indicates that a company can quickly sell its inventory, optimizing storage space and reducing holding costs. However, an extremely high turnover ratio can also indicate that the business\u2019s inventory levels are too low, which could lead to missed sales opportunities if demand increases unexpectedly or if there are supply chain issues.<\/p>\n\n\n\n<p>On the other hand, a low inventory turnover ratio could indicate overstocking, underperforming sales, or obsolete inventory. Such situations can lock up valuable capital and increase storage costs. Nonetheless, certain industries, like the automobile sector, conventionally maintain larger inventories, making a lower turnover ratio acceptable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-comparative-analysis-of-2-firms\">Comparative analysis of 2 firms<\/h2>\n\n\n\n<p>Let\u2019s consider 2 firms, Firm A and Firm B, both operating within the same retail industry. Suppose Firm A has an inventory turnover ratio of 5, while Firm B\u2019s ratio is 3. At first glance, it seems that Firm A, with the higher ratio, manages its inventory more efficiently and achieves stronger sales.<\/p>\n\n\n\n<p>However, if we know that Firm B maintains higher inventory levels intentionally to prevent stock-outs during peak sales seasons, the lower turnover ratio might not be an indicator of inefficiency. This scenario underscores the importance of context when interpreting turnover ratios.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-inventory-turnover-ratio-as-a-performance-indicator\">The inventory turnover ratio as a performance indicator<\/h2>\n\n\n\n<p>Inventory turnover measures can serve as powerful tools for evaluating operational efficiency and inventory management effectiveness. A balanced inventory turnover ratio can enhance profitability by minimising holding costs and ensuring inventory freshness, which is particularly crucial for businesses dealing with perishable goods.<\/p>\n\n\n\n<p>Imagine a fresh produce retailer with an inventory turnover ratio of 20. This high turnover rate indicates that the retailer effectively rotates its stock, preventing produce from sitting too long, which would lead to spoilage. This strategy ensures that customers receive fresh goods, enhancing customer satisfaction and loyalty, which are significant drivers of long-term business success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-strategies-to-improve-inventory-turnover-ratio-unlocking-enhanced-efficiency\">Strategies to improve inventory turnover ratio: Unlocking enhanced efficiency<\/h2>\n\n\n\n<p>Once you\u2019ve gained a good grasp of your inventory turnover ratio, you might be wondering, \u201cHow can I improve this ratio to benefit my business?\u201d To enhance your inventory turnover ratio, you\u2019ll need to refine both ends of the formula\u2014boosting sales and streamlining inventory management. Here are some effective strategies to consider:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-inventory-management-optimization\">1. Inventory management optimization<\/h3>\n\n\n\n<p>Your inventory management approach significantly impacts your turnover ratio. By implementing efficient inventory control methods, you can ensure that you don\u2019t overstock or under stock your inventory.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-demand-forecasting\">Demand forecasting<\/h4>\n\n\n\n<p>Demand forecasting involves predicting the future demand for your products based on historical sales data, market trends, and economic indicators. Effective <a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/order-management\/\">order management software<\/a> can automate this process, helping you plan your inventory levels more accurately, reducing instances of overstocking or stock-outs.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-fifo-method-first-in-first-out\">FIFO method (First-In, First-Out)<\/h4>\n\n\n\n<p>The FIFO method ensures that the oldest inventory items get sold first. This strategy is particularly crucial for perishable goods or items that become obsolete quickly. Selling older stock first reduces the risk of spoilage or obsolescence, improving turnover.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-automated-inventory-management-systems\">Automated inventory management systems<\/h4>\n\n\n\n<p>Modern technology offers a myriad of automated inventory management systems that can help you keep track of your inventory in real-time. These systems can alert you when stocks run low, prevent overstocking, and offer valuable insights to enhance your inventory management.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-sales-boosting-strategies\">2. Sales boosting strategies<\/h3>\n\n\n\n<p>To improve the turnover ratio, you should also focus on enhancing sales performance. There are numerous strategies you can employ to achieve this:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-pricing-strategies\">Pricing strategies<\/h4>\n\n\n\n<p><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/a-straightforward-pricing-guide-models-strategies-examples\/\" rel=\"noopener noreferrer\">Evaluate your pricing strategies<\/a> to ensure they\u2019re competitive and attractive to customers. Periodic sales, discounts, or loyalty programs can stimulate demand and increase sales volume.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-product-mix-and-placement\">Product mix and placement<\/h4>\n\n\n\n<p>Ensure your <a href=\"https:\/\/corporatefinanceinstitute.com\/resources\/management\/product-mix\/\" target=\"_blank\" rel=\"noopener noreferrer\">product mix<\/a> aligns with market demand. Regularly reviewing and adjusting your product offering to match customer preferences can boost sales. Additionally, effective in-store or online product placement can catch customer attention and drive sales.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-marketing-and-promotion\">Marketing and promotion<\/h4>\n\n\n\n<p>Effective marketing and promotion can significantly improve sales. Tailored advertising campaigns, social media marketing, and email marketing can reach wider audiences, attract potential customers, and promote repeat purchases.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-supplier-relationship-management\">3. Supplier relationship management<\/h3>\n\n\n\n<p>Establishing good relationships with suppliers can enhance your inventory turnover ratio. Reliable suppliers ensure <a href=\"https:\/\/www.techtarget.com\/searcherp\/definition\/replenishment\" target=\"_blank\" rel=\"noopener noreferrer\">timely inventory replenishment<\/a>, preventing stock-outs that could lead to lost sales. Additionally, negotiating better credit terms can improve your cash flow and financial flexibility.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-balance-is-key\">Balance is key<\/h3>\n\n\n\n<p>While these strategies can help improve your inventory turnover ratio, it\u2019s vital to remember that a higher turnover ratio isn\u2019t always better. Striking a balance is key\u2014you want to avoid stock-outs that could lose sales and damage customer relationships, while also preventing overstocking that can tie up capital and increase holding costs.<\/p>\n\n\n\n<p>The goal is to achieve a turnover ratio that reflects efficient inventory management, robust sales performance, and satisfied customers\u2014a triple win for your business.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts-on-inventory-turnover\">Final thoughts on inventory turnover<\/h2>\n\n\n\n<p>In conclusion, the inventory turnover ratio is more than a mere financial measure\u2014it\u2019s a story about your business\u2019s operational efficiency, sales effectiveness, and inventory management. This ratio, derived from a simple inventory turnover equation, can shed light on various dimensions of your business\u2019s performance.<\/p>\n\n\n\n<p>However, determining the \u201cright\u201d turnover ratio can greatly vary depending on your industry, business model, and specific circumstances. It\u2019s crucial to benchmark against industry norms and consider other factors like seasonality and supply chain reliability. Remember, the ultimate goal is not just to increase the turnover ratio but to strike a balance that optimises sales, minimises costs, and maximises customer satisfaction.<\/p>\n\n\n\n<p>By carefully monitoring and analysing your inventory turnover ratio, you can unlock valuable insights and guide your business towards higher operational efficiency and profitability. In the end, it\u2019s not just about numbers\u2014it\u2019s about making those numbers work for you. So, never underestimate the power of this humble ratio\u2014it tells a story much more significant than what meets the eye!<\/p>\n\n\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" 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related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-1543 post type-post status-publish format-standard has-post-thumbnail hentry category-free-guides-templates category-strategy-legal-operations tag-business-continuity tag-create-business-plan tag-grow-business tag-start-business business_type-small-business card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-740534235-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t<svg role=\"presentation\" aria-hidden=\"true\" focusable=\"false\" width=\"24\" height=\"24\" class=\"card-post__meta-icon svg-icon\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path d=\"M11.988 2.989a.75.75 0 0 0-.739.761v10.689l-1.72-1.72a.75.75 0 0 0-.957-.099.75.75 0 0 0-.315.776c.031.146.104.28.211.384l3 3a.75.75 0 0 0 1.06 0l3-3a.76.76 0 0 0 .231-.533.74.74 0 0 0-.22-.538q-.108-.106-.247-.164c-.139-.058-.191-.057-.291-.056s-.198.022-.29.061-.174.097-.243.169l-1.72 1.72V3.75a.76.76 0 0 0-.22-.541.76.76 0 0 0-.542-.22zM5.75 8.5C4.24 8.5 3 9.74 3 11.25v7C3 19.76 4.24 21 5.75 21h12.5c1.51 0 2.75-1.24 2.75-2.75v-7c0-1.51-1.24-2.75-2.75-2.75h-3a.76.76 0 0 0-.537.216.74.74 0 0 0-.223.535.76.76 0 0 0 .223.535.74.74 0 0 0 .537.216h3c.699 0 1.25.551 1.25 1.25v7a1.24 1.24 0 0 1-1.25 1.25H5.75a1.24 1.24 0 0 1-1.25-1.25v-7c0-.699.551-1.25 1.25-1.25h3a.76.76 0 0 0 .537-.216.74.74 0 0 0 .223-.535.76.76 0 0 0-.223-.535.75.75 0 0 0-.537-.216z\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-05T11:19:49+01:00\">5 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">8 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/how-to-write-a-business-plan\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tFree template: How to write a business plan\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tA business plan is essential for reaching financial success. Download our business plan template and use it to help you achieve your goals.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-15795 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accountant-accounting tag-accountant-automation tag-brexit-business tag-business-finances business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-account-reconciliation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg\" class=\"card-post__image\" alt=\"man in office\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1325244864-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" 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class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-768x478.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-944060494-1300x810.jpg 1300w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-27T15:12:53+01:00\">27 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business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/sound-advice-how-to-fund-your-startup-sam-jones\/?scroll=1\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-684x384.jpg\" class=\"card-post__image\" alt=\"Sam Jones\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-768x768.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/Blog_Header_Image_19-810x810.jpg 810w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div 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0 0-1-1\" \/><\/svg>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-05-21T15:03:16+01:00\">21 May, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">37 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tHow to fund\u00a0a\u00a0start-up: Top tips from\u00a0Dragons\u2019\u00a0Den\u2019s \u2018best ever pitcher\u2019\u00a0\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Discover the power of the inventory turnover ratio\u2014a crucial KPI for businesses. Learn its calculation, implications, and strategies to improve it.<\/p>\n","protected":false},"author":346,"featured_media":15819,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"footnotes":""},"categories":[6],"tags":[191,197,135],"business_type":[4,3],"lilypad":[],"context":[],"industry":[],"persona":[],"imagine_tag":[],"coauthors":[353],"class_list":["post-15797","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-business-continuity","tag-business-costs","tag-business-finances","business_type-small-business","business_type-medium-sized-business"],"sage_meta":{"region":"en-gb","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/08\/GettyImages-1149029523-3.jpg","imagine_tags":[]},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/15797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=15797"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/15797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/15819"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=15797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=15797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=15797"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=15797"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=15797"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=15797"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=15797"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=15797"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=15797"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=15797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}