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Stock Turnover Ratio?
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Answer / chetanaroopa
Stock turnover ratio or inventory turnover ratio means a
considerable amout of capital tied up in financing the raw
material,work in progress and finished goods. It is
importent to ensure that the level of stocks kept as low as
possible,consistent with need to fulfil customer's orders
in time
stock turnover ratio= cost of goods sold
---------------------
avg inventory
avg inventory=(opening stock+closing stock)/2
| Is This Answer Correct ? | 4 Yes | 2 No |
Answer / sudheer
it is ratio of cost of goods sold and average stock
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / a mariappan
Suppose stock and sales show as 50 and 400 lac respectively
in a balance sheet. Then inventory/stock turnover ratio is
sales/stock i.e, 400/50 8 times
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / kamil
this shows how fast stock is being sold. it should be as
high as possible but it depends on the type of business.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / aayushi
the stock turnover ratio measures the number of times a firm sells its stock within a time period, usually in a period of one year. the ratio therefore indicates the speed at which a firm sells and replenishes all its stock.
average stock divided by cost if the goods sold X 100
| Is This Answer Correct ? | 1 Yes | 3 No |
Answer / sohan singh
STOCK TURNOVER RATIO MEANS
The ratio of a company's annual sales to its inventory; or
equivalently, the fraction of a year that an average item
remains in inventory. Low turnover is a sign of
inefficiency, since inventory usually has a rate of return
of zero. For instance, if a company was able to generate
$10 million in sales but averaged $5 million in inventory,
the inventory turnover would be 10 million / 5 million = 2.
This number indicates that there would be 2 inventory turns
per year, meaning that it would take 6 months to sell all
the inventory.
I.e. Opening stock = 70
Sale of month = 15
purchase in month = 10
closing stock = 65
Average stoock of the month = (70+65)/2 = 67.5
STR = sale of the month/average stock
= 15/67.5
= .22%
Means we have stock of 130 days in hand.
| Is This Answer Correct ? | 0 Yes | 2 No |
Answer / yehya
Cost Of Stock sold during the year/Opening stock+ stock
purchased
| Is This Answer Correct ? | 1 Yes | 7 No |
Answer / ramana mfm
stock turnover ratio =netsales/net working capital
| Is This Answer Correct ? | 6 Yes | 13 No |
Answer / sarika ghadge
Stock Turnover Ratio,
Cost of Goods Sold/Average stock
Average stock=Opening stock/Closing stock
| Is This Answer Correct ? | 1 Yes | 8 No |
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