2 min read
Definition
Stock turnover (stock turn) is cost of goods sold divided by average stock, showing how many times inventory cycles in a period. Its inverse in days is your stock-holding period.
In plain terms
Faster turn means less cash sitting on shelves and less risk of stock going stale. Slow turn is cash quietly trapped in inventory you have already paid for.
Why it matters for your company
Improving stock turn releases working capital without borrowing. Where you must buy ahead of demand, inventory financing funds the gap. Check your cover with the stock cover calculator.
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Inventory financing
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Cost of goods sold (COGS)
Cost of goods sold (COGS) is the direct cost of the products or services you sold in a period — materials,…
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Working-capital cycle
The working-capital cycle is the time it takes for a pound spent on stock or operations to come back as a…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.