Scales Gym Supply has a very high inventory turnover ratio compared to its competitors. What does this most likely indicate?

Question

Quizplus · Accepted Answer

A high inventory turnover ratio typically indicates that a company is efficient in managing its inventory and selling its products, which often leads to greater revenue. This efficiency suggests that the company is effective in converting its inventory into sales, rather than having its capital tied up in unsold goods.

Scales Gym Supply Has a Very High Inventory Turnover Ratio