Glossary · Reading the business
In short
A measure of how quickly a company sells and replaces its inventory over a period. A higher rate usually means efficient sales and lower holding costs.
Analyze the inventory turnover rate to assess the business's sales efficiency and potential for obsolescence. A low turnover might indicate slow-moving or obsolete inventory, which ties up cash and could require write-downs. Compare it to industry benchmarks.
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.
Free · No documents · Usually same-day