Accounting MascotAccounting Q&A

What is stock turnover?
submitted by Funmi

renny

If by "stock" you mean inventory, stock turnover shows how quickly a business sells its inventory. If a shop sells and replaces its stock a lot during the year, its stock turnover is high. Basically, it tells you how fast the inventory is moving.

seventeen

It's a way to see how often a store sells all its stock in a certain time. If the stock turns over quickly, it means they're selling stuff fast. If not, they might have too much sitting around.

jergen

It's how many times a business sells out of its inventory in a year (or another accounting period, like a month or quarter). Think of it like counting how many batches of stock they go through. More turnovers means they sell more often.

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