Calculation of Stock Turnover Ratio

To calculate the stock turnover ratio, we need to consider the revenue from operations, gross profit (GP), and the value of stock at the beginning and end of the period.

Given Data:
- Revenue from operations: $200,000
- GP on cost: 25%
- Stock at the beginning: 1/3 of the stock at the end
- Stock at the end: 30% of the revenue from operations

Step 1: Calculate the Cost of Goods Sold (COGS)
COGS is the cost incurred to produce or acquire the goods sold during a specific period. It can be calculated using the formula:
COGS = Revenue from operations - Gross Profit

Given that the GP is 25% on the cost, we can calculate the COGS as follows:
GP = 25% of COGS
COGS = Revenue from operations - GP
COGS = $200,000 - 0.25 * COGS
0.75 * COGS = $200,000
COGS = $200,000 / 0.75
COGS = $266,666.67

Step 2: Calculate the Value of Stock at the End
The value of stock at the end is given as 30% of the revenue from operations.
Value of stock at the end = 30% of Revenue from operations
Value of stock at the end = 0.30 * $200,000
Value of stock at the end = $60,000

Step 3: Calculate the Value of Stock at the Beginning
The stock at the beginning is given as 1/3 of the stock at the end.
Value of stock at the beginning = 1/3 * Value of stock at the end
Value of stock at the beginning = 1/3 * $60,000
Value of stock at the beginning = $20,000

Step 4: Calculate the Average Stock
Average stock is calculated by taking the average of the stock at the beginning and the stock at the end.
Average stock = (Value of stock at the beginning + Value of stock at the end) / 2
Average stock = ($20,000 + $60,000) / 2
Average stock = $40,000

Step 5: Calculate the Stock Turnover Ratio
The stock turnover ratio is calculated by dividing the COGS by the average stock.
Stock turnover ratio = COGS / Average stock
Stock turnover ratio = $266,666.67 / $40,000
Stock turnover ratio = 6.67

Conclusion:
The stock turnover ratio for the given data is 6.67. This means that the company sells and replaces its stock approximately 6.67 times during the specific period. A higher stock turnover ratio indicates efficient management of inventory as it implies that the company is selling its stock quickly and replenishing it with new stock.