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As an example, if you have $1200 sales per year and your stock was $100, stock turn would be 1200/100=12 - this means you have sold your stock 12 times per year.

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Colour Coding

Colour
Definition
GreenThe stock turns per year varies from the target by less than 2.
YellowThe stock turns per year varies from the target by less than 4.
RedThe stock turns per year varies from the target by more than 4.

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