A high inventory turnover ratio normally indicates inefficient inventory policies.

Name: A high inventory turnover ratio normally indicates inefficient inventory policies.
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A high inventory turnover ratio usually indicates that a company is selling goods quickly and efficiently, which is a positive indication of effective inventory policies. A low inventory turnover ratio, on the other hand, may suggest that a company is holding too much inventory or not selling their goods quickly enough.

A High Inventory Turnover Ratio Normally Indicates Inefficient Inventory Policies