Which of the following is a negative sign that a company is not selling its inventory quickly?
A)A low inventory turnover ratio.
B)A high inventory turnover ratio.
C)A low average days in inventory.

Question

Quizplus · Accepted Answer

A low inventory turnover ratio indicates that a company is not selling its inventory quickly. This means that the company is holding on to its inventory for a longer period of time, which can lead to increased storage and holding costs, as well as potential obsolescence or spoilage of the inventory. A high inventory turnover ratio means the opposite, that the company is selling its inventory quickly. A low average days in inventory also indicates that a company is selling its inventory quickly.

Which of the Following Is a Negative Sign That a Company