Stocktaking is counting everything held in store. Annual stocktaking, closed for stocktaking, a stocktaking exercise.
The count reveals the shrinkage, which is the trade word for the difference between what the books say and what is on the shelf. The figurative use means a hard look at where things stand.
1nounstocktakingCounting everything held in store.
“The shop closes early on the last day of the year for stocktaking.”
stocktaking is a counting.
Stock plus taking, from taking an account of the stock held.
From stock + taking.
Etymology from Wiktionary, CC BY-SA