A lower days' sales in inventory for Samson, Inc., when compared to other companies, indicates that it is ________.

Question

Quizplus · Accepted Answer

A lower days' sales in inventory means that the inventory is being sold more quickly, which is a positive sign for the company's liquidity and profitability. Higher days' sales in inventory may indicate excess inventory or slower sales, leading to increased storage and insurance costs.

A Lower Days' Sales in Inventory for Samson, Inc