Stock Turnover
(Inventory Turnover - already covered).
Formula
Stock Turnover = Cost of Goods Sold ÷ Average Stock
Real World
Tesco turns over its fresh produce inventory multiple times per week, whereas a Rolex retailer may hold watches for months — illustrating how turnover varies dramatically by industry.
Exam Focus
State the formula, calculate correctly, then contextualise the result — high or low turnover means different things in different sectors.
How well did you know this?