How to Calculate Your Stock Turnover Ratio
Here is another video in a series looking at how to use ratios taken from your Annual Accounts to improve the financial performance of your business.
In this latest video Rob Warlow shares how calculating a Stock Turnover ratio will highlight the time it takes on average to turn-over or sell your stock. Holding on to stock for too long can damage your cashflow so you need to the tools to highlight any potential problems.
In this video Rob takes you through the steps on how to calculate and use this ratio.
You can also learn how to calculate and use a Debtor Collection Ratio and a Creditor Payment Ratio in these two vidoes