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If inventory "turns" every 4 months, how many turns occur in a year?

If a business’s inventory turns every four months, that means that all of the goods that the business has stored are depleted every four months.  Imagine that a business sells t-shirts.  It buys a shipment of shirts from its supplier and stores them.  In four months, all of the shipment of shirts has been sold.  At this point, we would say that the inventory had turned.  It had done so in four months.


Since there are twelve months in a year, a company that turns its inventory once every four months would have to replenish its stock three times in a year.  That means there would be three turns of inventory in the year.


Simple math, then, combined with an understanding of what it means to speak of inventory turning, tells us that there are three turns of inventory in the year.

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