Q: My FD has asked me a question and I’m not sure of the answer and can’t find it in the books: I need to know what the accepted
28 August 2012
Stock Turnover is a useful ratio for judging performance but there is no common yardstick that can be applied to all firms, as this varies according to the nature of the business.
Stock Turnover is a useful ratio for judging performance but there is no common yardstick that can be applied to all firms, as this varies according to the nature of the business. For example, a jeweller dealing in expensive items that have a high profit margin may turn over his stock relatively slowly, yet this may be acceptable, whereas a grocer with perishable low-...