Is 1.5 a good inventory turnover ratio?

A 1.5 inventory turnover ratio is low for most industries — it means you sell through your average inventory only 1.5 times a year, i.e. roughly eight months of stock sitting on shelves. For groceries (typical turnover 12–20+) or fast fashion (6–8) that would be alarming; general retail and ecommerce usually target somewhere between 4 and 8.

But context decides: furniture, jewelry, industrial equipment and other high-margin/slow-cycle businesses live healthily in the 1.5–4 range — fewer, bigger, higher-margin sales justify slower stock. So 1.5 is 'bad' only relative to your industry and margins.

If 1.5 is low for your sector, the usual culprits: over-buying (order smaller, more often), dead SKUs dragging the average (find and clear them), or prices/assortment misaligned with demand. Measure per-SKU, not just overall — the average hides the offenders.