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Stock turnover

Updated: Aug 20, 2021

The total sales turnover for a stated period, divided by the total average stock carried during that period. It is one of many ratios used in assessing the health of a business and is intended as a guard against the holding of excessive stock-in-trade. The argument is that money tied up in stocks is money idle unless those stocks are continually being sold and replaced.

Reference: The Penguin Business Dictionary , 3rd edt.

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James is a lead content editor for Invezz. He's an avid trader and golfer, who spends an inordinate amount of time watching Leicester City and the… read more.