Rate of stock turnover is calculated to determine

The rate of stock turnover is calculated to determine the number of times goods are bought and sold within a particular period. It is a measure of how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory level during a specific period. A high turnover rate indicates that a company is efficiently managing its inventory, while a low turnover rate indicates that a company is not efficiently managing its inventory.