Which financial metric can provide insights about a shop's sales efficiency?

The inventory turnover rate is a key financial metric that offers insights into a shop's sales efficiency. This metric indicates how often inventory is sold and replaced over a specific period. A higher inventory turnover rate suggests that a shop is selling products quickly, which is indicative of effective sales strategies and inventory management. This efficiency in moving inventory can lead to improved cash flow and reduced holding costs, making it a crucial metric for assessing how well a shop is performing in terms of sales relative to its inventory levels.

In contrast, net profit margin provides insights into profitability but does not directly reflect sales efficiency. Gross sales total reflects the overall revenue but does not account for how effectively inventory is managed or sold. Lastly, employee satisfaction score is relevant for understanding employee morale but does not directly relate to how efficiently sales are being made.