Meaning & use

stock turn

noun·Advancedbusiness

Last updated

UK/ˈstɒk tɜːn/
US/ˈstɑːk tɜːrn/

Meaning

  1. nouncountablebusiness

    The number of times a company sells and replaces its entire inventory during a particular period, usually a year.

    Grammar: Countable: use 'a' or 'the' and a plural form: a stock turn of six, high stock turns.

    Patterns

    • a stock turn of + number
    • high/low stock turn
    • improve stock turn

    The supermarket chain reported a stock turn of twelve, meaning it sold out its shelves almost every month.

    Analysts praised the retailer for its high stock turn, which kept cash flowing and reduced storage costs.

    A low stock turn can signal that too much money is tied up in products that are not selling.

Word forms

pluralstock turns

Common combinations

high stock turn
The company's high stock turn impressed investors.
low stock turn
A low stock turn often means poor sales or overstocking.
stock turn ratio
The stock turn ratio is calculated by dividing cost of goods sold by average inventory.
improve stock turn
They improved stock turn by using just-in-time ordering.
annual stock turn
Our annual stock turn has risen from four to six.

Synonyms and how they differ

inventory turnover
This is the more formal and common term in American English and in financial reports; 'stock turn' is a shorter, slightly more British variant.
stock turnover
Almost the same meaning, but 'stock turnover' can also refer to the rate at which employees leave and are replaced, so context matters.

Word family

stockturn noun
A closed compound spelling of the same term, used mainly in British business writing.

Commonly confused: stock turn or stock return?

stock turn vs stock return

Not the same: 'stock return' means the profit you make from shares, while 'stock turn' is about how quickly a shop sells its goods.

Practice

A shop sells and replaces its entire inventory eight times a year. What is this figure called?

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