Frame board turns

Definition

How many times a year the optical inventory on the wall sells through and is replaced.

Why It Matters

The dispensary is where an optometry practice makes its money, and the frame board is real cash sitting on a wall. A practice turning it twice a year has inventory working; one turning it less is financing frames nobody is buying, which shows up as a healthy revenue line and a sick balance sheet. Count the board, price it at cost, and read the turns against the optical revenue before agreeing what the working capital peg should be.