For each of the ratios listed , select the appropriate code letter, whether it is a liquidity ratio, a profitability ratio or a solvency ratio:
-Inventory turnover
A) Liquidity ratio (L)
B) Profitability ratio(P)
C) Solvency ratio(S)

Question

Quizplus · Accepted Answer

Inventory turnover is considered a liquidity ratio because it measures how quickly a company can convert its inventory into cash or sales.

For Each of the Ratios Listed , Select the Appropriate