The inventory turnover ratio indicates whether a company is holding excessive stocks of inventory.

Name: The inventory turnover ratio indicates whether a company is holding excessive stocks of inventory.
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As the inventory turnover ratio rises, the firm gets closer to the just-in-time system. An inventory turnover ratio that is better than the industry average or one that is improving each month means that the firm is operating more efficiently.

The Inventory Turnover Ratio Indicates Whether a Company Is Holding