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

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Both inventory turnover ratio and days sales outstanding (DSO) are used to evaluate the efficiency of a company's asset management. The inventory turnover ratio measures how quickly a company sells its inventory, while DSO calculates the number of days it takes to turn its accounts receivable into cash.

The Inventory Turnover Ratio and Days Sales Outstanding (DSO) Are