Stock turnover is an activity ratio. It measures how efficiently a company sells its inventory. A higher stock turnover ratio indicates that a company is selling its inventory more quickly, which can be a sign of good management. A lower stock turnover ratio indicates that a company is holding onto its inventory for longer, which can be a sign of poor management or a lack of demand for its products.
Profitability ratios measure how profitable a company is. They compare a company’s net income to its revenue, assets, or equity. Profitability ratios can be used to compare companies in the same industry or to track a company’s profitability over time.
Leverage ratios
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