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Anas Abdussalam
من قبل Anas Abdussalam , Intern , AlexBank

Stock Turnover

Stock turnover is more commonly known as inventory turnover

It's a ratio showing how many times a company's inventory is sold and replaced over a period of time

 

Stock turnover rate is considered to be a measure of sales performance; usually the higher the stock turnover rate, the better your stock/business is performing

The lower the rate, the longer the stock is taking to turn over. Funds are invested in stock for longer periods, which, in turn, has an adverse effect on cash flow

 

 

GEZAHEGN GETANEH YIMAME
من قبل GEZAHEGN GETANEH YIMAME , General Manager-Owner , Gezahegn Getaneh Accountancy & Tax Audit (2GATA)

Inventory turnover ratio=sales over ending inventory

mostafa elzanaty
من قبل mostafa elzanaty , Financial Controller , Technical Trading Co.

Inventory turnover is a ratio showing how many times a company's inventory is sold and replaced over a period of time. The days in the period can then be divided by the inventory turnover formula to calculate the days it takes to sell the inventory on hand. It is calculated as sales divided by average inventory

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
من قبل Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

how many times a company's inventory is sold and replaced over a period of time

 it is calculated  as the following

Cost of Goods Sold ÷ Average Inventory

Or

Sales ÷ Inventory

Abdelrahman Ali Mohamed Abdelrehim
من قبل Abdelrahman Ali Mohamed Abdelrehim , Accounting Manager, 7-2021-present , Petroleum Pipelines Co.

thank you for the invitation

I agree with the mates 

Abdulrasheed olabode
من قبل Abdulrasheed olabode , Senior Internal Auditor , IHS TOWERS LIMITED

I agree with Anas Abdussalam

Mohammed El Tahir Mohammed Yousif
من قبل Mohammed El Tahir Mohammed Yousif , Finance Manager , Factory of Golden Block Company for Cement Products

 

The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by comparing cost of goods sold with average inventory for a period. This measures how many times average inventory is "turned" or sold during a period. In other words, it measures how many times a company sold its total average inventory dollar amount during the year. A company with $1,000 of average inventory and sales of $10,000 effectively sold its 10 times over, and it is calculate by dividing cost of sales / average inventory stock for the same period

 

Frank Mwansa
من قبل Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Thanks for invitation 

This ratio is an estimate of the average time that inventory is held before it is used or sold. 

 

Inventory turnover = inventory/cost of sales ×365 days.

In theory, inventory should be the average of inventory during the year. This is the average of the inventory at the beginning of the year and the inventory at the end of the year. However, the value for inventory at the end of the year is also commonly used.

Soliman Abd  ALmalak Gendy
من قبل Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

It's calculating by dividing cost of goods sold for a period by the average inventory for that period_It is a ratio showing how many times company's inventory is sold and replaced over a period of time

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