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Question
What is Stock (Inventory) Turnover Ratio?
Short Answer
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Solution
The Stock (Inventory) Turnover Ratio shows how the average inventory and the cost of products sold are interconnected. It displays the frequency with which inventory is converted into sales over the course of the year or the speed at which inventory is rotated into sales.
`"Inventory Turnover Ratio"="Cost of Revenue from Operations"/"Average Inventory"`
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