Answer / phaneendra

cost of goods sold/avarege stock*100

Answer / phani

This ratio establishes relationship b/w the cost of goods
sold during a given period and the average amount of
inventory carried during that period.
It indicates whether the stock has been efficiently used or
not,the purpose being to check up whether only the required
minimum has been locked up in stocks.
FORMULA:
cost of goods sold /avarage stock*100

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