Plz help me- RATIO analysis

Stock velocity is also known as Stock/Inventory Turnover Ratio.

Stock Turnover Ratio = Cost of Goods Sold/Average Stock

Where Average Stock = [Opening Stock + Closing Stock]/2

Cost of Goods Sold = Opening Stock + Net Purchases + Direct Expenses – Closing Stock

velocity general meaning stock holding period but in context of ratio it is used as stock turnover ratio yeh answer given by krishna is correct

Originally posted by : Abhishek K. Pandey
	Stock velocity means movement of stock, but in your context , as above said it is stock turnover ratio. To find Debtors balance from average collection period. Use this formula. Average Debtors = Net Credit Sales During the Year*Average Collection Period/365 days or 12 months, as the case may be. Regards, Abhishek K. Pandey

apt answer..

TOTAL ASSETS TURN OVER RATIO-   NETSALES/TOTAL ASSETS

I AGREE WITH ABISHEK

Thanks to all of u

i agree with krishna

i agree with krishna. i would have given same answer