ANZ New Zealand

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    Calculators
    The stock turnover ratio indicates how quickly your business is turning over stock.

    Use information from your business' annual profit and loss statements and balance sheet to input into the calculator.

    For information on using this calculator see below.
    Calculator Stock Turnover Ratio Calculator
    A red star Field required indicates a mandatory field.
    reset calculate
    A high ratio may indicate positive factors such as good stock demand and management. A low ratio may indicate that either stock is naturally slow moving or problems such as the presence of obsolete stock or good presentation. A low ratio can also be indicative of potential stock valuation issues. It is a good idea to monitor the ratio over consecutive financial years to determine if a trend is developing.

    It can be useful to compare this financial ratio with the working capital ratio. For example business operations with low stock turnover tend to require higher working capital.

    The calculation used to obtain the ratio is:
     

    Stock Turnover Ratio =

      Cost of Goods  
     Average Stock

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    Disclaimer

    This material is for information purposes only. Its content is intended to be of a general nature, does not take into account your financial situation or goals, and is not a personalised financial adviser service under the Financial Advisers Act 2008. It is recommended you seek advice from a financial adviser which takes into account your individual circumstances before you acquire a financial product. If you wish to consult one of ANZ's financial advisers, please contact us on 0800 269 296.

    ANZ will not store the information provided in this calculator.