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.
Stock Turnover Ratio Calculator
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
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.