The _______ ratio indicates how long the inventory remains on a store shelf.

Question

Quizplus · Accepted Answer

The inventory turnover ratio measures the number of times a company's inventory has been sold and replaced in a given period of time. This ratio indicates how efficiently the inventory is being managed and can provide insight into sales and demand for the company's products. When calculating the inventory turnover ratio, the average inventory is divided by the cost of goods sold.

The _______ Ratio Indicates How Long the Inventory Remains on a Store