The inventory turnover ratio calculates:
A) how many times the inventory turns over in one period.
B) number of times inventory is purchased in one period.
C) the dollar amount of change in inventory in one period.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period, typically a year, indicating the efficiency of inventory management.

The Inventory Turnover Ratio Calculates