STOCK TURNOVER RATIO

The ratio expresses the speed of converting the stock into sales. In other words, how fast the stock is being converted into sales in a year? The greater the ratio of conversion leads to lesser the number of days /weeks /months required to convert the stock into sales.
Standard norm of the ratio: Ratio Analysis Higher the ratio is better the firm in converting the stock into sales and vice versa The next step is to find out the number of days or weeks or months taken or consumed by the firm to convert the stock into sales volume.
Lower the duration is better the position of the firm in converting the stock into sales and
vice versa.

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