Introduction to Financial Markets (405) — CBSE Class 10 board question

$$\text{Stock (Inventory) Turnover Ratio} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}}$$

Source: Turnover Ratios, Chapter 10

• "Stock Turnover Ratio" and "Inventory Turnover Ratio" are the same; either name is accepted.
• Cost of Goods Sold = Net Sales − Gross Profit; Average Inventory = (Opening Stock + Closing Stock) ÷ 2.
• For 1 mark, writing just the formula is sufficient — no further explanation needed.