Stock Turnover Calculator Results
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Your calculator results are as follows:
| Cost of goods sold: | £ |
| Average value of stock: | £ |
| Your stock turnover ratio is: | 0.00:1 |
Back to Stock Turnover Calculator
What the results mean
A high ratio may indicate positive factors such as good stock demand and management. A low ratio may indicate that either stock is naturally slow moving or problems such as the presence of obsolete stock or good presentation.
A low ratio can also be indicative of potential stock valuation issues. It is a good idea to monitor the ratio over consecutive financial years to determine if a trend is developing.
It can be useful to compare this financial ratio with the working capital ratio. For example business operations with low stock turnover tend to require higher working capital.
The calculation used to obtain the ratio is:
Stock Turnover Ratio = Cost of Goods / Average Stock
Should you have any queries regarding your company's finances - Money Advice Direct has a very effective, workable and legal answer - call us now on:
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074 6918
or Email us at: info@insolvencyhelpline.co.uk
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The IVA is an extremely powerful tool enabling you to clear your debt and return to a clean financial bill of health. Visit Money Advice Direct's Guide to Individual Voluntary Arrangements (IVAs).
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