The annual number of stock turnover

The annual number of stock turnover = Cost of selling goods / stock - This ratio provides information about the number of times during which the stock is turned. High turnover of stocks may indicate a greater liquidity and a good sale on the one hand, and on the other to indicate the lack of necessary stocks for sale. Small stock turnover on the one hand can be interpreted as a small liquidity due to overload stocks or obsolete stocks, and on the other hand it can mean a planned stockpiling in case of shortages. When the quotient is zero, then the ratio is undefined and this is the best state. The quotient will be zero when the data on operating expenditure are very small, so that the quotient is rounded to zero.Values of ratios are starting with zero and moving toward higher values.