We need to draw a report of the quantities of stock we had in February this year, is Magento able to do this?
You can check Low stock report only from Magento default. However through customization yes possible to get Month wise stock.
Hope it helps you, cheers
You can't create this report in Magento. Basically everytime you add in new stock Magento overrides what was your previous stock. When it overrides it doesn't keep a history of the previous stock level.
You need to find an extension that does this. The extension will then keep track of your stock history. It will track the stock history for the length of time you have it connected to your site. For example if you put it on in August 2015 it will keep a track of that stock. It will be able to show you the opening stock in August 2015 and the closing stock in August 2015.
Moco Insight has the functionality. It also would also give you an historical sales reportings for August as well. For example, sell through, stock turn and stock average.