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Stock Turnover Ratio?

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Stock Turnover Ratio?..

Stock Turnover Ratio =

Cost of Goods
Average Stock

 Is This Answer Correct ? 97 Yes 18 No

Stock Turnover Ratio?..

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:
STR=COGS/Av. stock

 Is This Answer Correct ? 85 Yes 7 No

Stock Turnover Ratio?..

The rate of stock turn over in units is calculated by
taking no. of units sold during the time period divided by
the average units of inventory on hand for the
time.

stock turn over ratio=cost of goods sold/average stock

 Is This Answer Correct ? 42 Yes 12 No

Stock Turnover Ratio?..

stock turnover ratio show the relationship between cost of
goods sold and average stock.
formula
= cost of goods of sold/average stock
average stock= opening stock+closing stock\2

 Is This Answer Correct ? 24 Yes 4 No

Stock Turnover Ratio?..

Stock turnover ratio is used to know How many times stock
utilised for particular sales

formula

Cost of goods sold/Average stock

or

Sales /Average stock

 Is This Answer Correct ? 24 Yes 7 No

Stock Turnover Ratio?..

stock turnover ratio =

COST OF GOODS SOLD / AVERAGE STOCK*100

COST OF GOODS SOLD = SALES_ GROSS PROFIT
OR
OPENING STOCK + PURCHASE + DIRECT EXPENSES - CLOSING STOCK

 Is This Answer Correct ? 22 Yes 5 No

Stock Turnover Ratio?..

STOCK TURNOVER RATIO = COST OF GOODS SOLD/AVERAGE INVENTORY
COST OF GOODS SOLD= SALES -GROSS PROFIT
AVERAGE INVENTORY = (OP STOCK +CLOSING STOCK) /2

THIS RATIO ESTABLISHES RELATIONSHIP BETWEEN THE COST OF
GOODS SOLD AND AVERAGE INVENTORY CARRIED OUT.

 Is This Answer Correct ? 16 Yes 3 No

Stock Turnover Ratio?..

stock turnover ratio = Cost of goods sold/Average stock
where, Cost of goods sold is Opening stock + Purchases +
Direct expenses-closing stock
Average stock is openeing stock + closing stock /2

 Is This Answer Correct ? 12 Yes 3 No

Stock Turnover Ratio?..

stock Turnover Ratio =
Cost of Goods\Average Stock

 Is This Answer Correct ? 8 Yes 1 No

Stock Turnover Ratio?..

Stock Turnover Ratio = Cost of Goods Sold/Average Stock
For year 2008 = 7.2067 times
For year 2007 = 6.556 times
Analysis:- Stock turnover ratio shows that every rupee
invested in stock has been used to achieve more sales. A
firm with high ratio can sell even at a low margin.A higher
ratio indicates that the firm is making higher sales and
that itâ€™s storage cost is low.

 Is This Answer Correct ? 7 Yes 1 No

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