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Question : Find the stock turnover ratio from the following:
Opening stock Rs.39,000 Closing stock Rs.41,000 Purchases Rs.2,52,000.

Option 1: 12 Times

Option 2: 15 Times

Option 3: 9 Times

Option 4: 6.25 Times


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 10th Jan, 2024

Correct Answer: 6.25 Times


Solution : Cost of goods sold = Opening Stock + Purchase – Closing Stock
Cost of goods sold = 39,000 + 2,52,000 - 41,000 = 2,50,000
Stock Turnover Ratio =  Cost of goods sold / Average Stock
Stock Turnover Ratio =  250000/(39000+41000/2)
Stock Turnover Ratio = 6.25:1.
Hence, the correct option is 4.

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