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# PRESENTED BY Milaan Patel -19 PRESENTED TO DG sir

Merchandise turnover is defined as sales in a given period of time divided by the average stock during the same period . By merchandise turnover or stock turnover we mean the number of times the average stock is sold during a given period, usually a year . Thus, stock turnover is a measure of how fast merchandise is sold and replaced.

Stock urnover=
etail sales (for the period) Average stock at retail (for the period)

PRESENT STOCK

SALE

STOCK AVAILABLE

SALE

YEAR S SALE

Di

## ram : Merc a dise T r over

A store had sales of Rs. 30 Lakhs in a given year, and the average inventory (as calculated at selling price) was Rs. 10 Lakhs, then the merchandise turnover was : = 30,00,0oo

10,00,000 =3.33%

Turnover also be calculated at cost figure rather than a retail sales, i.e., using sales prices It can also be calculated by units rather than rupee sales. But usually it calculated using the selling price, as given in example