The JIT production process means inventory levels are kept to a minimum. A low inventory figure on the balance sheet means a higher inventory turnover ratio, making the company look more efficient. The inventory turnover ratio is a metric used in corporate finance to estimate how efficiently a company is selling its products. By dividing the total cost of goods sold (COGS) by the average inventory over a given period, the inventory turnover ratio reflects the number of times the company has sold its total average inventory. A company with little to no inventory has a much higher ratio than a company with equivalent COGS expenses that utilizes a more anticipatory production strategy. High inventory turnover ratios are considered a good sign of operational efficiency, effective purchasing management, and productive use of advertising and promotional campaigns aimed at generating sales.