A Report On The Stock Turnover

1808 Words Oct 21st, 2016 8 Pages
Interpretation:- It is discovered from above desk that the stock turnover has been elevated to 3.78 instances within the 12 months 2007-08 as compared to 2.43 times inside the yr 2006-07. It shows better manipulate over stock and efficiency in income. considering that IFFCO is within the commercial enterprise of fertiliser manufacturing and in this sector a massive investment in plant and equipment is needed. Maintaining in view the investment in Plant & machinery on this quarter for which number of spares and stores gadgets are required to be maintained for renovation of the plant, the above inventory Turnover ratio is reasonable. however, IFFCO must successfully use numerous stock control gear to control the stock ranges like ABC evaluation, monitoring of stock levels i.e. ROL, EOQ, Min-level, Max-stage machine of verification of Inventory.

Inventory Turnover Ratio

1) Working Capital Turnover- This ratio establishes a relationship between net sales and working capital. Net Current Assets are also known as working capital instead of total current assets is being compared with the sales. This ratio indicates the velocity of the utilization of net working capital. It indicates the number of times the working capital is turned over in the course of a year. This ratio is calculated as follows- Working Capital Turnover- Sales Working Capital…

More about A Report On The Stock Turnover

Open Document