A low inventory turnover ratio may indicate
A) higher revenue.
B) having to replenish inventory often.
C) low customer satisfaction.
D) having too much obsolete inventory.
E) efficiency in selling inventory.

Question

Quizplus · Accepted Answer

A low inventory turnover ratio often indicates that a company may be holding too much inventory that is not selling, which could include obsolete items. This does not directly relate to higher revenue, frequent replenishment, customer satisfaction, or efficiency in selling inventory.

A Low Inventory Turnover Ratio May Indicate