| A financial ratio that shows how fast a company sells its goods, calculated as: sales divided by year-end stocks. If, for example, a company has sales of œ60m and a year-end stock figure of œ3.2m its stockturn multiple is 18.85. Stockturn is particularly relevant for manufacturing or retailing businesses. The higher the figure, the more efficient the company is in processing stock. Another way of looking at stock is to calculate the number of days on average that a company keeps its stock. This is expressed as the year-end stock figure divided by the sales, and multiplied by 365. Using the figures above, œ3.2m divided by œ60m, then multiplied by 365 = 19.46 days.
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