A decline in a firm's inventory turnover ratio suggests that it is managing its inventory more efficiently and also that its liquidity position is improving, i.e., it is becoming more liquid.
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Q1: The inventory turnover ratio and days sales
Q3: Debt management ratios show the extent to
Q4: High current and quick ratios always indicate
Q5: Even though Firm A's current ratio exceeds
Q6: It is appropriate to use the fixed
Q7: The basic earning power ratio (BEP)reflects the
Q8: Since the ROA measures the firm's effective
Q9: Suppose firms follow similar financing policies, face
Q10: Firms A and B have the same
Q11: Profitability ratios show the combined effects of
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