The stock turnover
ratio indicates how quickly your business is
turning over stock.
Use information from your business' annual
profit and loss statements and balance sheet to input
into the calculator.
For information on using this calculator
see below.
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.
NOTE:
The calculator is provided for illustrative purposes
only and the calculations are based on the accuracy of the
information provided by you. The information about the
calculators and the results of the calculations are necessarily
general and are only intended as a guide.
When deciding on what your business will do, many factors need
to be considered, including your business' situation and
financial position.
ANZ will not store the information provided in this calculator.
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