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stock turnover ratio= cost of goods sold divided by stock or you can say it like... net sales / average inventory

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Q: How do you calculate stock turnover ratio?
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Related questions

How do you calculate stock holding ratio?

Stock holding ratio is the same as inventory turnover ratio. To find this ratio one must find the cost of goods sold to a business and its average inventory over a certain time period.


How do you calculate stock turnover period?

Stock turnover period = Closing stock x 365 / cost of sales


Stock turnover ratio?

Cost of goods sold/Average Stock * 100


How do you calculate debtors turnover ratio?

Debtor turn over ratio = Total sales / debtors By using this formula debtor turnover ratio can be found.


How do you calculate total asset turnover?

Total asset turnover ratio = total sales / total assets


How calculate accounts receivable turnover ratio?

the formula of calculating account receivable turnover = Net Sales/ average gross receivable


What is the asset turnover ratio used for?

The asset turnover ratio is used to calculate how effectively a company is using it's assets to encourage production. If the asset turnover ratio is high, the assets are being used effectively. If the ratio is low, the assets could be used more productively to facilitate production.


What is the negative impact on good inventory turnover ratio?

An unusually high Inventory Turnover Ratio compared to Industry could mean a Business is losing sales because of inadequate stock on hand.


What is finished goods turnover ratio?

turnover ratio +


Classification of Ratio Analysis?

1. Ratios for management a. Operating ratio b. Debtors turnover ration c. Stock turnover ratio d. Solvency ratio e. Return on capital 2. Ratios for creditors a. Current ratio b. Solvency ratio c. Fixed asset ratio d. Creditors turnover ratio 3. Ratios for share holders a. Yield ratio b. Proprietary ratio c. Dividend rate d. Capital gearing e. Return on capital fund.


How do you calculate creditor's turnover?

There are two ways to calculate Creditors Turnover. First is using the COGS (Cost of Goods Sold) as the basis. Creditors Turnover = COGS / Creditors (A/c Payables) . Second is the more common method which uses Sales as the basis. Creditors Turnover = Net Sales / Creditors (A/c Payables).


How to calculate DP ratio?

Stock+debtors-creditors/sale