Bite Size Economics No.27
'Speed of turnover is the engine of capitalist profitability'
The central mechanism of capitalist enterprises is the transformation of cash into commodities & the subsequent transformation of those products back into cash (Marx modelled this as a circular relation).
Each time the enterprise completes the circle it produces profit; so the more times a year the circle is completed, the more profits are made! Unsold stock is thus a brake on profits.