Help! URGENT! EXAM!! What is Stock Cover??? (Ratio Analysis)

Stock cover shows how well inventory is managed, by calculating the number of days that you turnover (or sell) inventory during a year.
A low number of days may indicate positive factors such as good stock demand and management. The quicker stock is turned over, the greater the sales and the greater your profit, provided margins are maintained.
A high number of days may indicate that either stock is naturally slow moving or problems such as the presence of obsolete stock or good presentation. A high number of days can also be indicative of potential stock valuation issues. It is a good idea to monitor the ratio over consecutive financial years to determine if a trend is developing.
This ratio gives you one insight into your business. To determine the full financial performance of your business, you will also need to analyse your financial statements and calculate the other financial ratios.