The inventory turnover ratio and days sales outstanding (DSO)are two ratios that are used to assess how effectively a firm is managing its current assets.

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Both the inventory turnover ratio and days sales outstanding are commonly used ratios to evaluate a company's efficiency in managing its current assets. The inventory turnover ratio measures how quickly a company sells its inventory, while DSO measures how long it takes for a company to collect payments from its customers.

The Inventory Turnover Ratio and Days Sales Outstanding (DSO)are Two