Stock turnover can be expressed as number of times stock is sold in a year or as what other measure?

• A. Average days to sell stock
• B. Total stock value
• C. Total profits from stock
• D. Inventory period

Answer: (A)

Stock turnover is a rate that shows how many times inventory is sold and replaced in a year. The same idea can be expressed as the average number of days stock stays in inventory before it’s sold. Since a year has about 365 days, you can get the days by dividing 365 by the turnover rate. So, if stock turns over eight times a year, the average days to sell stock is roughly 46 days. This days figure helps managers see how quickly inventory moves, which is key for planning purchases and cash flow. The other options don’t express this time-based movement: total stock value is just the monetary value of inventory, and total profits from stock relate to profitability, not how fast stock is sold. Inventory period is another way to describe the same idea in some contexts, but the question is asking for the days-based measure, which is captured by average days to sell stock.