A decline in the inventory turnover ratio suggests that the firm's liquidity position is improving.

Name: A decline in the inventory turnover ratio suggests that the firm's liquidity position is improving.
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A decline in the inventory turnover ratio means that the firm is taking more time to sell its inventory, indicating that its liquidity position may be worsening. An increase in the inventory turnover ratio suggests better liquidity as the firm is selling inventory at a faster pace.

A Decline in the Inventory Turnover Ratio Suggests That the Firm's