Companies with high inventory turns, which replenish inventory levels more frequently, have more cash tied up in inventory, which means that those funds cannot be used elsewhere.

Question

Quizplus · Accepted Answer

High inventory turns indicate that a company sells and replenishes its inventory quickly, meaning less cash is tied up in inventory, allowing more funds to be available for other uses.

Companies with High Inventory Turns, Which Replenish Inventory Levels More