Calculation of stock turn
In accounting, the inventory turnover is a measure of the number of times inventory is sold or used in a time period, such as a year. It is calculated as the cost of goods sold divided by the average inventory. Inventory turnover is a ratio showing how many times a company has sold and replaced inventory during a given period. A company can then divide the days in the period by the inventory turnover formula to calculate the days it takes to sell the inventory on hand.