What is the primary thing the inventory turnover ratio says about a business?
A) How profitable it is
B) How risky it is
C) How much inventory it has
D) How much average inventory it has
E) How often new merchandise replaces old merchandise

Question

Quizplus · Accepted Answer

The inventory turnover ratio calculates the frequency at which new inventory replaces old inventory. It is a measure of how efficiently a company is managing its inventory.

What Is the Primary Thing the Inventory Turnover Ratio Says