The ratio of cost of goods sold over average stock (at cost). This indicates how many times, on average, the entire inventory (stock) was sold and replaced during the year. A high ratio may indicate positive factors such as good stock demand and management. A low ratio may indicate that either stock is naturally slow moving or problems such as the presence of obsolete stock.
Stock Turnover Ratio = Cost of Goods Average Stock |
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Anonymous
October 20, 2007
PingBack from http://msdnrss.thecoderblogs.com/2007/10/21/retail-glossary-stock-turnover/Anonymous
October 20, 2007
The ratio of cost of goods sold over average stock (at cost). This indicates how many times, on average