Which of the following is calculated by dividing cost of goods sold by average inventory and then dividing this result into 365 days?
A) Profit margin ratio.
B) Current ratio.
C) Days to collect ratio.
D) Days to sell ratio.

Question

Quizplus · Accepted Answer

The calculation described in the question is for the Days to Sell Ratio, which measures the average number of days it takes for a company to convert its inventory into sales.

Which of the Following Is Calculated by Dividing Cost of Goods