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Answer Posted / sam
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 it’s storage cost is low.
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