Inventory Turnover Ratio or Stock Turnover Ratio (ITR) : Every firm has to maintain a certain level of inventory or stock of finished goods so as to be able to meet the requirements of the business. But the level of inventory should neither be
Components of the Ratio
Operating ratio is computed by dividing operating expenses by net sales. It is expressed in percentage.A ratio that shows the efficiency of a company’s management by comparing operating expense to net sales.