An extremely high inventory turnover ratio may be a signal that the company is losing sales due to inventory shortages.
Correct Answer:
Verified
Q88: We calculate the times interest earned ratio
Q89: A low inventory turnover ratio usually is
Q90: The acid-test ratio is always smaller than
Q91: The receivables turnover ratio measures how many
Q92: The gross profit ratio is calculated as
Q94: Ratios that compare an income statement account
Q95: Solvency refers to a company's ability to
Q96: We use the times interest earned ratio
Q97: The average days in inventory converts the
Q98: We use horizontal analysis to analyze trends
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents