Answers » Categories » Stocks

Give me a good example of stock turnover?

pl z give any company example of turn over


1 Answer

0 
Stock turnover measures how well the company is making use of the capital that has been invested in stock.
The formula is the following:
Cost of goods sold
Stock turnover ratio = --------------------------
Stocks

It shows how many times over the business has sold the value of its stocks during the year. A large figure may indicate poor inventory management. The quicker a business turns over its stocks, the better. 
Some businesses have to hold large value of stock to meet customer needs. Fast-food outlets turnover their stocks over several times each week, while a distributor of industrial products may turn stocks over 10—20 times per year.

Stock turnover can be improved by
- Introduce lean production techniques
- Sell-off obsolete stocks
- Return stocks to suppliers

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:  

Your Answer:  
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question