Glossary · Reading the business
In short
This ratio measures how many times a business sells and replaces its inventory over a period. A healthy rate indicates efficient sales and inventory management.
Analyze the inventory turnover rate to understand the business's sales velocity and potential for obsolescence. A low rate might mean slow-moving inventory tying up capital, while a very high rate could signal insufficient stock to meet demand. It impacts working capital needs.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
Pressure-test the numbers before you make an offer
Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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