In trying to evaluate the management of inventory you could calculate the inventory turnover ratio and compare that ratio to the industry average.You would conclude that inventory could be managed better if

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A lower inventory turnover ratio indicates that the company is holding onto inventory for a longer period of time than the industry average. This could be due to a number of factors, such as poor inventory management practices, slow sales, or overstocking. By improving inventory management practices, the company could reduce its inventory levels and improve its inventory turnover ratio.

In Trying to Evaluate the Management of Inventory You Could