Which ratio is used to assess a company's efficiency in managing its inventory?
Practice Questions
1 question
Q1
Which ratio is used to assess a company's efficiency in managing its inventory?
Inventory Turnover Ratio
Current Ratio
Debt to Equity Ratio
Return on Equity
The Inventory Turnover Ratio assesses a company's efficiency in managing its inventory by measuring how many times inventory is sold and replaced over a period.
Questions & Step-by-step Solutions
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Q
Q: Which ratio is used to assess a company's efficiency in managing its inventory?
Solution: The Inventory Turnover Ratio assesses a company's efficiency in managing its inventory by measuring how many times inventory is sold and replaced over a period.
