stockturn
Stockturn, also known as inventory turnover, is a financial ratio that measures how many times a company has sold and replaced its inventory over a given period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value for that same period. A higher stockturn generally indicates that a company is selling its products efficiently, while a lower stockturn might suggest that inventory is not moving as quickly, potentially leading to increased storage costs and the risk of obsolescence.
The formula for stockturn is: Stockturn = Cost of Goods Sold / Average Inventory. Average inventory is typically
Analyzing stockturn is crucial for inventory management. A business might aim to increase its stockturn by