Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?
A) days of inventory
B) asset turnover
C) average collection period
D) fixed asset turnover
E) inventory turnover

Question

Quizplus · Accepted Answer

Inventory turnover measures how efficiently a company is managing its inventory by calculating how many times it sells and replaces its average inventory over a period of time.

Which Financial Ratio Measures the Number of Times That Average