Smith Company has a low number of days in inventory.This indicates that:
A) their inventory sales are producing low profits.
B) the cost of inventory is very high.
C) the company has a low gross profit percentage.
D) their inventory is turning over rapidly.

Question

Quizplus · Accepted Answer

A low number of days in inventory indicates that the company's inventory is turning over rapidly, which is generally a positive sign as it means that the company is efficiently managing its inventory levels and not tying up excessive amounts of capital in inventory.

Smith Company Has a Low Number of Days in Inventory