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Meaning of stock turnover

 

 

 

Stock turnover

 

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Business glossary

 

Meaning of term stock turnover :

 

Stock turnover is a ratio that measures the number of times in a year a business sells their stocks. It is calculated by dividing the cost of sales by the stock figure. This gives the 'number of times' that a firm has sold their stock in a year. A high figure is desirable but the figure will vary a lot according to the industry the firm operates in and so it is essential to compare it with similar firms.

 

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Stock turnover

 

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