An extremely high inventory turnover ratio may be a signal that the company is losing sales due to inventory shortages.

Name: An extremely high inventory turnover ratio may be a signal that the company is losing sales due to inventory shortages.
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Question

Quizplus · Accepted Answer

A very high inventory turnover ratio could indicate that a company does not have enough inventory on hand to meet demand, potentially leading to lost sales if customers seek alternatives when products are out of stock.

An Extremely High Inventory Turnover Ratio May Be a Signal