Riverdale Drugs has an inventory turnover ratio of 15 times while RJ's Drugs has an inventory turnover of 14 times. RJ's is less efficient in managing its inventory.

Question

Quizplus · Accepted Answer

A higher inventory turnover ratio indicates more efficiency in managing inventory, as it shows that a company is selling and restocking its goods more frequently. Therefore, with Riverdale Drugs having a higher turnover ratio than RJ's Drugs, RJ's is less efficient in managing its inventory.

Riverdale Drugs Has an Inventory Turnover Ratio of 15 Times