Which ratio is calculated to ascertain the efficiency of inventory management in terms of capital investment?
A)stock velocity ratio.
B)debtors velocity ratio.
C)creditors velocity ratio.
D)working capital turnover ratio.

Question

Quizplus · Accepted Answer

The stock velocity ratio, also known as inventory turnover ratio, measures how efficiently a company manages its inventory in terms of capital investment. It indicates how many times inventory is sold or used over a period, helping assess the effectiveness of inventory management.

Which Ratio Is Calculated to Ascertain the Efficiency of Inventory