What does inventory turnover specifically measure?

Inventory turnover specifically measures the frequency of inventory sales and replacements. This metric reflects how quickly a company sells its inventory during a given period, indicating the efficiency of the sales process and inventory management. A higher turnover ratio often suggests strong sales or effective inventory management practices, as the business is converting its inventory into sales quickly.

In contrast, the other options focus on different aspects of inventory. For example, measuring the total value of inventory on hand does not directly relate to sales performance; it simply conveys how much inventory is valued at a given moment. Similarly, while storage costs pertain to the expenses related to maintaining inventory, they do not indicate how often the inventory is sold. Lastly, the length of time products are held in stock may provide insight into inventory stagnation but does not directly measure the frequency of sales and replacements. Thus, option B accurately captures the specific essence of inventory turnover as it pertains to sales efficiency.